Algorithmic Trading Platform

A trading platform is a software where there is live streaming of market prices of various financial products. The traders can open or close trading positions as per the requirements on the algorithmic trading platform. Trading can include execution of trades in different financial products such as stocks, bonds, currencies, commodities etc. Trading platforms may even provide additional trading tools, such as charting package, news feed, and account management system.

Algorithmic Trading Platforms consists of three major components:

1. Market data Adapter - Market data adapter receives the market data from the exchange(s) and converts it into a standardized format, which can be understood by the system application.

2. Complex Event Processing Engine (CEP) - Complex Event Processing makes use of the data received from the market data adapter to infer events or patterns and take appropriate actions to capitalize on opportunities and make decisions for order generation by using the trading algorithm, i.e. the trading strategy. Basically, CEP engine is where your strategy would be present.

3. Order Routing System - The order is encrypted in the language which exchange can understand, using the APIs provided by the exchange.