How does order matching happen in stock exchanges?
The matches happen when compatible buy orders and sell orders for the same security are submitted in close proximity in price and time. Generally, a buy order and a sell order are compatible if the maximum price of the buy order matches or exceeds the minimum price of the sell order.
What is the process of matching all buy and sell orders in the market?
Summary
- Matching orders refers to the process of entering buy and sell orders simultaneously to facilitate the trading of the security.
- In modern exchange markets, buy and sell orders are matched electronically.
- Many algorithms are available for matching buy and sell orders.
How do you find the maximum match?
Quote: If you go through all the remaining unmatched edges you'll find that you can't add any of them to the current matching I want to contrast maximal to maximum a maximum matching is the largest matching.