Matching Logic

Matching logic is the specific, automated set of rules used by an exchange to pair buy and sell orders. It determines the order of priority, which is typically price-first, then time-first.

Understanding this logic explains why one order might get filled before another at the same price. For professional traders, especially those using high-frequency systems, matching logic is critical.

They design their order placement to be as aggressive or as passive as necessary based on how the matching engine prioritizes trades. It is the unseen rulebook that governs every transaction on a centralized exchange, ensuring a fair and consistent market environment.