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Sunday, January 17, 2010

Why C++ ?

Algorithmic trading whenever we talk about is implemented in c++ irrespective of the fact system or strategy.

One of the reason for c++ being used is low latency. Latency is the delay in the order submitted and order executed .In algrtihmic trading latecny is importnt because as soon as target price arrive, order has to be executed otherwise there is no advantage of setting up these systems.

C++ is code is low level code (very near to hardware) due to which its execution takes place at higher speeed as compare to higher languages code like Java etc which needs time for both compile time and run time.

One question that can come to a programmer mind is why not C ? No doubt C is better in terms of speed but C++ being object oriented emerges out as a best candidate for AT.

Note: Latency is affected by other factors as well like broadband speed,distance to server,Execution speed etc. Execution can be reason HPC (High Performance Computing) role in trading is increasing day by day.

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