Order Matching

TxFlow uses a Price-Time Priority Central Limit Order Book (CLOB).

Matching Priority

1. Best price first — highest bid (for sells) or lowest ask (for buys) matches first

2. Oldest Order First — among orders at the same price, the earliest order is matched first

Matching Process

When a taker order arrives:

1. Find the best maker order on the opposite side.

2. Execute at the maker's price (takers receive price improvement when possible).

3. Repeat until the taker order is fully filled or no more crossing orders exist.

4. If unfilled remainder exists — limit orders rest in the book; market and IOC orders are cancelled.

Example

Order book state:

Bids (Buy)	Price	Asks (Sell)
2 BTC	$49,950
5 BTC	$49,900
	$50,000	3 BTC
	$50,050	4 BTC

Scenario: You place a Market BUY for 5 BTC.

1. Match 3 BTC @ $50,000 (oldest ask at best price)

2. Match 2 BTC @ $50,050 (next best ask)

3. Order fully filled; average execution price = $50,020

Related Pages

Pages	Description
Order Types	Market, Limit, and advanced orders
Liquidation	Detailed liquidation mechanics
Trading Fees	Trading and funding fees