Order Matching
The exchange process that pairs a buy order with a sell order at a compatible price to create a trade.
How it is identified
Test: a trade occurs when the best bid price is greater than or equal to the best ask price
Unit
qualitative
In depth
Matching is purely mechanical: when a buy price meets or exceeds a sell price, the exchange crosses them and prints a trade at the price of the order that was already resting. That last detail is the one people get wrong — an aggressive buy at ₹251 hitting a resting ask at ₹250.10 executes at ₹250.10, not ₹251, so a limit order can fill better than its limit. The engine also enforces price-time priority and applies circuit limits before accepting an order at all. Continuous matching runs through the session; the pre-open and post-close use a different, batched mechanism.
Worked example
You place a limit buy at ₹251 while the best ask is ₹250.10. The trade executes at ₹250.10 because that order was resting first, saving ₹0.90 a share against your own limit.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Order Matching” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.