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Trading Rules

Matching Mechanism

I. Definition of matching mechanism

 


Matching transactions means that the buyers and sellers entrust their orders in the trading market, determine the price of both parties in accordance with the principle of price priority, time priority to facilitate the transaction.

 

 

 II. Principle of matching mechanism

 

1.Price Priority

Higher buy applications take precedence over lower buy applications, while lower sell applications take precedence over higher sell applications.

 

If A buys at the price of 100 CNY, B buys at the price of 80 CNY, then A will conclude the transaction first.

If A sells at the price of 100 CNY, B sells at the price of 80 CNY, then B will conclude the transaction first.

 

 2.Time Priority

 For applications of the same price, the order of priority is determined by the time of application. This means that the person who first put forward the transaction application will conclude the transaction first.

If A submits the sell application at 9:00, B submits the sell application at  9:10, then the system will give priority to A’s transaction.

 

III. Examples of matching

 

Sell5   77.86   19

Sell4   77.85   16

Sell3   77.81   23

Sell2   77.78   17

Sell1   77.76   21

 

Buy1   77.70   14

Buy2   77.68   28

Buy3   77.65   30

Buy4   77.34   63

Buy5   77.10   29

 

 

Take the above as an example:

1. If the user buys 14(quantity) at 77.76(price), then the transaction will be concluded at 77.76(price) and 14(quantity).

2. If the user buys 2(quantity) at 77.78(price) or higher, then the transaction will be concluded at 77.76(price) and 2(quantity).

3. If the user sells 14(quantity) at 77.70(price), then the transaction will be concluded at 77.70(price) and 14(quantity).

4. If the user sells 21(quantity) at 77.68(price) , then the transaction will partly be concluded at 77.70(price) and 14(quantity); the other part will be concluded at 77.68(price) and 7(quantity).