Order Matching

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

Matching Priority

Orders are matched according to:

1. Best Price First — Highest bid (for sells) or lowest ask (for buys)

2. Oldest Order First — If multiple orders have 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 (price improvement for takers)

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

4. If unfilled, limit orders rest in the book; market/IOC orders are cancelled

Example

Order Book:

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)

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