Making a trading system trade with exchanges
A trading system contains a number of functional components that are responsible for trading and risk management, as well as monitoring the trading process on one or more exchanges. A trading strategy becomes a part of the trading system once it is coded. As input, you'll need price data, and as output, your orders. This will give out trading signals. We'll need gateways to finish this flow because they're the most important components.
The functional components of a trading system, the gateway's interface, and the trading system's interaction with the outside world are depicted in the following diagram:
Figure 2.3 – The functional components of a trading system
The gateways gather and send orders based on pricing and market reactions. Their primary function is to establish a link and translate data received from the outside world into the data structure needed by the trading system...
