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MATCHING ENGINE

The system of exchange that mixes buy and sell orders.

Published by The Retail Trader · JUL 31, 2026 · Order Flow

Matching Engine — The system of Exchange that matches buy and sell orders.

WHERE THIS FITS IN

This term comes under Order Flow, in the "Language of ORDER BOOK" section. The following is running inside the depth window that opens on the screen:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Bid
• Ask / Offer
• Bid-Ask Spread
• Market Depth
• Order Book
• Price-Time Priority
• Last Traded Quantity
• Bid-Ask Imbalance

To read the entire group and all its examples in one place, see the journal "ORDER FLOW: FROM ORDER TO EXECUTION" - this term is taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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