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Trade Execution Engine Meaning

A trade execution engine is a software component responsible for routing, matching, and executing trading orders across one or multiple venues. It manages order logic, execution rules, and interaction with liquidity sources.

Execution engines support various order types, time-in-force conditions, and algorithmic strategies. They are designed to optimize speed, reliability, and price efficiency under varying market conditions.

In institutional crypto trading, execution engines are central to managing fragmented liquidity, minimizing latency, and enforcing execution constraints across centralized and decentralized venues.

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