Trade Matching
Trade matching is the process by which a trading venue pairs compatible bid and ask orders to produce matched trades and determine execution prices. It uses a matching engine that applies venue-defined rules, such as price-time priority, to decide which orders match and at what price.
Example: In a continuous trading venue, a market order will be matched against the best available bid or ask in the order book, with the execution price determined by the resting orders and prevailing rules.
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