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Learn Algorithmic Trading
book

Learn Algorithmic Trading

by Sebastien Donadio, Sourav Ghosh
November 2019
Beginner content levelBeginner
394 pages
10h 31m
English
Packt Publishing
Content preview from Learn Algorithmic Trading

Trading protocols

To have two entities communicate with each other, they need to talk the same language. In networking, we use a protocol. In trading, this protocol is used for any venue. Some venues can have numerous protocols. Even if they are different, the steps that these protocols go through to establish a connection and start trading are similar:

  1. They start by initiating a logon describing who the trading initiator is, who the recipient is, and how the communication remains alive.
  1. Then, they inquire about what they expect from the different entities, for example, trading or subscribing price updates.
  2. After, that they receive orders and price updates.
  3. Then, they maintain communication by sending heartbeats.
  4. Finally, they close communication. ...
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Publisher Resources

ISBN: 9781789348347Supplemental Content