Question

What happens if an active order finds a match?

Hint:

In NEAT, an active order that finds a match results in an instant trade — no manual intervention required.

Answer 1

In the NEAT system, when an active order (a new order entered by a trader) finds a match with a passive order already present in the order book, a trade is executed immediately. This matching is based on the principle of:

Price-time priority – orders with the best price are matched first; among same-price orders, the one entered earlier is given priority.
Process Flow:

The active order is entered.
The system checks the order book for a matching passive order.
If a match is found (buy price is greater or equal to sell price), the trade is executed instantly.
A trade confirmation is sent to both buyer and seller.
The order status updates to “Traded” or “Partially Traded” depending on the matched quantity.
This automatic matching mechanism ensures quick, transparent, and efficient trading on the exchange.