Nowadays everyone who is invested in the trade market is using a term more frequently. It is matching engine technology. This is a technology in which digital exchange will be used to match all the bids and offers in order to perform trades. The main principle behind this is that it stores all the algorithms that are used for all orders in the market.
They will generate new orders if one or two orders fulfill the given criteria. Trading is handled by these electronic trading matching engines all over the world. This software is helping many traders who want to trade with one another.
Features that are to be there in any matching engine
- This matching engine should have comprehensive coverage and should offer functionality that matches all the attributes and market models.
- The matching technology should show high performance
- They should marketplaces that are small and big, from simple to complex giving an option to scale once more volume is added.
- They should connect all over the world workstations
- The matching engine technology should have cloud technology and support that will be available 24/7 which can support B2B, B2C, and C2C trading models depending on the order size and trading volumes.
Benefits with Trading and matching Technology
- This can help in reducing the cost and even the difficulty in the trading operations.
- With its flexible and adaptable infrastructure, this can change and launch new markets very quickly and can use multiple engines on a single platform.
- This technology can help in delivering projects that are related to trading in less time and that too in less budget.
- This is helpful for a person who wants to buy stock for a price that another person is interested to sell for.
- This reduces the cost of the transactions.
- By using this technology, the manufacturers can directly market their products without any mediation involved or required.
Why is this technology important for trading?
The primary role of matching engine technology is that it has to take the orders from both buyers and sellers and it will match them and once they are matched, it makes sure that they are executed.
With this, the costs that are there with the mediation or intermediate ones will be reduced and the manufacturers can enjoy their profits directly without having to share them.
Even the customers will also benefit as they will get to enjoy access to their interesting brand directly without having to deal with someone else. The customers can also track their orders using the system directly. They can do that using their mobile phones as soon as they place their order.
This technology of matching engines will provide a platform that is common for both the buyer and the seller and allow them to meet there and make their bids respectively. The prices and the trade values will be transparent as they are directly talking with the manufacturers.
As everyone who has knowledge of trading is continuously involved in this. Hence t will be difficult for humans to match the orders manually as there will be thousands of transactions every single minute. To make trading more efficient and simple there is the requirement for this automated matching technology.