What Is a Matching Engine?
At its core, a matching engine is a sophisticated software system that brings together buyers and sellers in financial markets. Imagine it as the matchmaker of the trading world, pairing those looking to buy with those ready to sell, and vice versa. Its primary mission is to execute trades swiftly and efficiently, creating a level playing field for market participants.
Matching Engines vs. Traditional Methods
In the past, trading and order matching were heavily based on phone calls and manual processes. Such systems were significantly more time-consuming and prone to human error when compared to the sophisticated matching engine systems we use today. Modern matching engines can match and execute trades fairly and swiftly