We are building a Bitcoin Exchange. So is it allowed to execute the order of the same user, that is to execute the buy limit order of the user1 with sell limit order of the user1 if the price matches. What is approach that all financial exchanges usually follow, they execute them or leave it.
Waiting for your suggestions and solutions.
Thanks,
On
Most regulated exchanges would stop short of prohibiting users crossing their own orders and discourage it instead. If a client crosses too many own orders, they would call up to ask why. Regulators would normally follow the same path. The reason - crossing your own orders is considered a form of Market manipulation.
There are many reasons one might want cross their own orders:
An alternative some exchanges are starting to implement as a selling point to prop shops is to cross the orders, but not report it to the Market (in effect, acting as a internal crossing engine for each client).
You shouldnt automatically make the trade. Let the user know that he can buy from himself, but dont do it unless the user says so.