How does the order matching system work on the platform?
The order matching system on the dYdX platform works by allowing users to submit orders to buy or sell a particular asset.
These orders are then matched with other orders in the order book, and when a match is found, the trade is executed. The order matching system works by using an algorithm that takes into account various factors such as price, quantity, and time. The algorithm looks for orders that have similar characteristics and matches them together.
For example, if two users submit orders to buy or sell the same asset at the same price, then those orders will be matched together and a trade will be executed. The order matching system also takes into account liquidity in the market. If there are not enough buyers or sellers for a particular asset, then the algorithm will look for other assets that have similar characteristics and match them together instead.
This helps ensure that trades are executed quickly and efficiently. Finally, the order matching system also takes into account fees associated with each trade. Fees are calculated based on the size of each trade and can vary depending on which asset is being traded.
This helps ensure that all trades are fair and transparent for both parties involved in the transaction.
