Python for Algorithmic Trading

Chapter 8. CFD Trading with Oanda

Today, even small entities that trade complex instruments or are granted sufficient leverage can threaten the global financial system.

Paul Singer

Today, it is easier than ever to get started with trading in the financial markets. There is a large number of online trading platforms (brokers) available from which an algorithmic trader can choose. The choice of a platform might be influenced by multiple factors:

Instruments

The first criterion that comes to mind is the type of instrument one is interested in to trade. For example, one might be interested in trading stocks, exchange traded funds (ETFs), bonds, currencies, commodities, options, or futures.

Strategies

Some traders are interested in long-only strategies, while others require short selling as well. Some focus on single-instrument strategies, while others focus on those involving multiple instruments at the same time.

Costs

Fixed and variable transaction costs are an important factor for many traders. They might even decide whether a certain strategy is profitable or not (see, for instance, Chapters 4 and 6).

Technology

Technology has become an important factor in the selection of trading platforms. First, there are the tools that the platforms offer to traders. Trading tools are available, in general, for desktop/notebook computers, tablets, and smart phones. Second, there are the application programming interfaces (APIs) that can be accessed programmatically by traders. ...