Financial Data Telephone Commutation (Fix) Protocol Interview Questions Answers
Sunday, June 17, 2018
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Financial Information Exchange (FIX) Protocol Interview Questions in addition to Answers
Some to a greater extent than Fix protocol interview question , I volition set respond along when I'll acquire around fourth dimension for at nowadays but questions :)
Now I own got updated it alongside answer, Please permit me know if you lot own got whatever doubt, or you lot own got other questions, you lot tin likewise contribute past times whatever inquiry asked during any FINANCIAL INFORMATION EXCHANGE (FIX) protocol interview.
What produce you lot hateful past times Warrant?
Warrant is a fiscal production which gives right to holder to Buy or Sell underlying fiscal security, its similar to choice alongside around differences e.g. Warrants are unremarkably issued past times banks spell options are primarily traded inward exchange.
What is hateful past times Settlement of Securities? When Settlement does occur?Some to a greater extent than Fix protocol interview question , I volition set respond along when I'll acquire around fourth dimension for at nowadays but questions :)
Now I own got updated it alongside answer, Please permit me know if you lot own got whatever doubt, or you lot own got other questions, you lot tin likewise contribute past times whatever inquiry asked during any FINANCIAL INFORMATION EXCHANGE (FIX) protocol interview.
What produce you lot hateful past times Warrant?
Warrant is a fiscal production which gives right to holder to Buy or Sell underlying fiscal security, its similar to choice alongside around differences e.g. Warrants are unremarkably issued past times banks spell options are primarily traded inward exchange.
In Simple term Settlement agency coin volition deducted from buyers in addition to describe of piece of work concern human relationship in addition to security(Shares) volition hold upward credited to his describe of piece of work concern human relationship , unremarkably Settlement occurs after few days of merchandise appointment for most of the telephone substitution its T+3 (i.e. Three days afterward merchandise date) , T denotes Trade appointment agency the appointment on which transaction has taken place.
For around of the exchanges e.g. NSE India, SEHK Hongkong its T+2.
What is NewOrderSingle, OrderCancelReplance in addition to OrderCancel Reject message?
These are the basic, most commonly used messages inward Electronic trading via FINANCIAL INFORMATION EXCHANGE (FIX) protocol.
NewOrderSingle message is denoted past times MsgType=D in addition to its used to house an Order, OrderCancelReplace Request is modification asking denoted past times MsgType=G inward FINANCIAL INFORMATION EXCHANGE (FIX) protocol in addition to used to modify Order e.g for changing quantity or toll of Order.
OrderCancelRequest is tertiary inward this category denoted past times MsgType=F inward FINANCIAL INFORMATION EXCHANGE (FIX) protocol in addition to used to cancel Order placed into Market.
What are most common issues come across when 2 FIX Engine communicates ?
When Clients connect to broker via FINANCIAL INFORMATION EXCHANGE (FIX) protocol, at that topographic point FIX engine connects to each other, spell setting upward in addition to during farther communication many issues tin occur below are around of most mutual ones:
Issues related to network connectivity
Issues related to Firewall rules
Issue related to wrong host/port lift spell connecting.
Incorrect SenderCompID in addition to TargetCompID
Sequence Number mismatch
Issue related to FINANCIAL INFORMATION EXCHANGE (FIX) version mismatch
What produce you lot hateful past times Incoming Sequence No in addition to Outgoing Sequence No? Which tag is used to acquit Sequence No?
Sequence Number is real of import concept of FINANCIAL INFORMATION EXCHANGE (FIX) protocol which essentially provides it Recovery in addition to replay functionality in addition to ensures that no message volition lose during transmission or communication. In FINANCIAL INFORMATION EXCHANGE (FIX) protocol every message contains a unique sequence number defined inward tag 34. Logically nosotros tin split upward sequence number into 2 Incoming in addition to Outgoing Sequence number.
Incoming sequence number is the number whatever FIX Engine expecting from Counter Party in addition to Outgoing sequence number is the number whatever FIX engine is sending to Counter Party.
What happens if Client connects alongside Sequence No higher than expected?
If Client FIX Engine connects to Broker Fix Engine alongside Sequence Number higher than expected (e.g. broker is expecting Sequence Number = 10 in addition to Client is sending = 15). As per FINANCIAL INFORMATION EXCHANGE (FIX) protocol Broker volition own got the connectedness in addition to lawsuit a Resend Request (MsgType=2) asking Client to resend missing messages (from messages 10 -15) , Now Client tin either replay those messages or tin lawsuit a Gap Fill Message (MsgType=4 every bit per FINANCIAL INFORMATION EXCHANGE (FIX) protocol) inward illustration replaying those messages doesn't brand whatever feel (could hold upward admin messages e.g. Heartbeat etc).
What produce you lot hateful past times Funari Order type?
Funari is real pop Order type commonly used inward Japanese in addition to Korean marketplace position , its denoted past times OrdType=I in FIX protocol , In Funari Order type Order volition stay inward Market every bit Limit Order but during Market Closing menstruum , if at that topographic point is whatever unexecuted quantity therefore it volition plough into a Market Order.
What produce you lot hateful past times Odd lot in addition to Board lot?
In Exchanges every Security traded inward lot e.g. lot of 1, 10 or 100 or 1000. These are called Board lots in addition to spell placing club clients demand to shipping Order quantity multiple of Board lot. If Clients sends whatever Order which is non a multiple of Board lot therefore its called Odd lot.
What happens if Client connects alongside Sequence No lower than expected?
If Client FIX engine connects to broker FIX engine alongside Sequence No lower than expected than broker FIX engine volition disconnect the connection. As per FINANCIAL INFORMATION EXCHANGE (FIX) protocol customer therefore may elbow grease past times increasing its sequence Number until broker accepts its connection.
What is the deviation betwixt PossDup in addition to PossResend?
As per FINANCIAL INFORMATION EXCHANGE (FIX) protocol PossDupFlag (tag 43): indicates possible retransmission of message alongside this sequence number valid value:
Y = Possible duplicate
due north = Original transmission
PossResend (tag 97): Indicates that message may incorporate information that has been sent nether around other sequence number.
Valid Values:
Y=Possible resend
N=Original transmission
In Simple terms PossDup is when you lot are resending a message in addition to PossResend is when you lot are sending a novel message alongside same information you lot own got already sent inward a previous message.
Let’s reckon below occupation illustration for clarity with PossDup, you lot tin shipping out an club alongside Sequence number of 10. Then you lot shipping around other message alongside a number of 11. For around argue the counter party did non have message 10 in addition to volition asking a resend. You volition therefore resend this same message alongside a sequence number of 10 mark tag 43=Y.
In illustration of PossResend, you lot may shipping out an order, i time to a greater extent than let's tell alongside a sequence number of 10. After five seconds, you lot own got non gotten an acknowledgement. So you lot may create upward one's heed to elbow grease i time to a greater extent than because perhaps the counterparty didn't have or got the outset time. So you lot volition shipping out a message alongside a dissimilar sequence number similar 11, which volition incorporate all of the same information message number 10 did. You volition therefore score it every bit a PossResend. So this is maxim you lot own got already sent this club before, which Counter political party may or may non own got processed.
While treatment of PossDups is dictated past times session logic, PossResends are dictated past times buisiness logic (e.g. Reject an Order if ClOrdID is duplicate etc). This is because it is upward to the describe of piece of work concern layer to determine if a detail describe of piece of work concern object has been processed (by checking the club id for instance).
You own got bought a stock at INR 100 in addition to desire to sell it every bit shortly every bit it hits INR 110. If you lot desire to guarantee that your sell club is filled, which of the next types of club should you lot place?
In this illustration you lot tin non occupation restrict club because restrict club doesn't guarantee execution if at that topographic point are similar LIMIT club exists therefore it volition hold back for its turn. You tin non either occupation Market Order because it didn't give you lot Price guarantee in addition to volition fill upward on electrical flow price. Solution is to occupation "STOP" club alongside halt toll 110, every bit shortly every bit toll reaches 110 it volition acquire activate but inward illustration of high volatility it tin fill upward to a greater extent than or less 110 if toll is moving real fast.
Which of the next orders would hold upward automatically canceled if non executed immediately?
Fill or Kill (FOK) in addition to Immediate or Cancel (IOC) orders are types of club which either executed forthwith or acquire cancelled past times exchange. TimeInForce (tag 59) inward FINANCIAL INFORMATION EXCHANGE (FIX) protocol is used to score an club every bit FOK or IOC.
What is the deviation betwixt FOK club in addition to IOC Order?
Main deviation betwixt FOK in addition to IOC Order is that FOK demands amount execution of club i.e. all quantity has to hold upward filled spell IOC club is ready to own got partial fills also?
What is STP (Straight through Processing) Systems?
STP is abbreviation of "Straight though processing" which denotes trading systems which requires either no manual interaction or around manual interaction for whole merchandise life bike e.g. everything afterward submission of Order e.g. processing, execution, booking, allocation, small town occurs automatically.
NON STP systems require manual interaction on around phases of merchandise life bike e.g. booking or settlement.
Further Learning
The Fix Guide: Implementing the FIX Protocol 2nd Edition
Building Winning Algorithmic Trading Systems
Trading Systems in addition to Methods past times Perry J. Kaufman
Linux Command Line Interface (CLI) Fundamentals
TCP/IP Networking for Developers
To acquire to a greater extent than virtually FINANCIAL INFORMATION EXCHANGE (FIX) protocol read my FINANCIAL INFORMATION EXCHANGE (FIX) protocol tutorial series
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