Financial Data Telephone Commutation (Fix) Protocol Interview Questions Answers
Financial Information Exchange (FIX) Protocol Interview Questions together with Answers
Some to a greater extent than Fix protocol interview question , I volition lay reply along when I'll acquire around fourth dimension for at nowadays merely questions :)
Now I direct maintain updated it alongside answer, Please allow me know if y'all direct maintain whatsoever doubt, or y'all direct maintain other questions, y'all tin forcefulness out too contribute yesteryear whatsoever inquiry asked during any FINANCIAL INFORMATION EXCHANGE (FIX) protocol interview.
What produce y'all hateful yesteryear Warrant?
Warrant is a fiscal production which gives right to holder to Buy or Sell underlying fiscal security, its similar to pick alongside around differences e.g. Warrants are usually issued yesteryear banks piece options are primarily traded inward exchange.
What is hateful yesteryear Settlement of Securities? When Settlement does occur?Some to a greater extent than Fix protocol interview question , I volition lay reply along when I'll acquire around fourth dimension for at nowadays merely questions :)
Now I direct maintain updated it alongside answer, Please allow me know if y'all direct maintain whatsoever doubt, or y'all direct maintain other questions, y'all tin forcefulness out too contribute yesteryear whatsoever inquiry asked during any FINANCIAL INFORMATION EXCHANGE (FIX) protocol interview.
What produce y'all hateful yesteryear Warrant?
Warrant is a fiscal production which gives right to holder to Buy or Sell underlying fiscal security, its similar to pick alongside around differences e.g. Warrants are usually issued yesteryear banks piece options are primarily traded inward exchange.
In Simple term Settlement agency coin volition deducted from buyers together with draw of piece of job organisation human relationship together with security(Shares) volition live on credited to his draw of piece of job organisation human relationship , usually Settlement occurs after few days of merchandise engagement for most of the telephone commutation its T+3 (i.e. Three days afterward merchandise date) , T denotes Trade engagement agency the engagement on which transaction has taken place.
For around of the exchanges e.g. NSE India, SEHK Hongkong its T+2.
What is NewOrderSingle, OrderCancelReplance together with OrderCancel Reject message?
These are the basic, most commonly used messages inward Electronic trading via FINANCIAL INFORMATION EXCHANGE (FIX) protocol.
NewOrderSingle message is denoted yesteryear MsgType=D together with its used to house an Order, OrderCancelReplace Request is modification asking denoted yesteryear MsgType=G inward FINANCIAL INFORMATION EXCHANGE (FIX) protocol together with used to modify Order e.g for changing quantity or cost of Order.
OrderCancelRequest is 3rd inward this category denoted yesteryear MsgType=F inward FINANCIAL INFORMATION EXCHANGE (FIX) protocol together with used to cancel Order placed into Market.
What are most common issues meet 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, piece setting upwardly together with during farther communication many issues tin forcefulness out occur below are around of most mutual ones:
Issues related to network connectivity
Issues related to Firewall rules
Issue related to wrong host/port cite piece connecting.
Incorrect SenderCompID together with TargetCompID
Sequence Number mismatch
Issue related to FINANCIAL INFORMATION EXCHANGE (FIX) version mismatch
What produce y'all hateful yesteryear Incoming Sequence No together with Outgoing Sequence No? Which tag is used to comport Sequence No?
Sequence Number is really of import concept of FINANCIAL INFORMATION EXCHANGE (FIX) protocol which essentially provides it Recovery together with replay functionality together with 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 forcefulness out split sequence number into 2 Incoming together with Outgoing Sequence number.
Incoming sequence number is the number whatsoever FIX Engine expecting from Counter Party together with Outgoing sequence number is the number whatsoever 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 together with Client is sending = 15). As per FINANCIAL INFORMATION EXCHANGE (FIX) protocol Broker volition convey the connexion together with trial a Resend Request (MsgType=2) asking Client to resend missing messages (from messages 10 -15) , Now Client tin forcefulness out either replay those messages or tin forcefulness out trial a Gap Fill Message (MsgType=4 every bit per FINANCIAL INFORMATION EXCHANGE (FIX) protocol) inward example replaying those messages doesn't brand whatsoever feel (could live on admin messages e.g. Heartbeat etc).
What produce y'all hateful yesteryear Funari Order type?
Funari is really pop Order type commonly used inward Japanese together with Korean marketplace , its denoted yesteryear OrdType=I in FIX protocol , In Funari Order type Order volition rest inward Market every bit Limit Order but during Market Closing menstruation , if at that topographic point is whatsoever unexecuted quantity thence it volition plough into a Market Order.
What produce y'all hateful yesteryear Odd lot together with Board lot?
In Exchanges every Security traded inward lot e.g. lot of 1, 10 or 100 or 1000. These are called Board lots together with piece placing guild clients demand to ship Order quantity multiple of Board lot. If Clients sends whatsoever Order which is non a multiple of Board lot thence 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 thence may seek yesteryear increasing its sequence Number until broker accepts its connection.
What is the deviation betwixt PossDup together with 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 comprise information that has been sent nether around other sequence number.
Valid Values:
Y=Possible resend
N=Original transmission
In Simple terms PossDup is when y'all are resending a message together with PossResend is when y'all are sending a novel message alongside same information y'all direct maintain already sent inward a previous message.
Let’s watch below utilisation example for clarity with PossDup, y'all tin forcefulness out ship out an guild alongside Sequence number of 10. Then y'all ship around other message alongside a number of 11. For around argue the counter party did non have message 10 together with volition asking a resend. You volition thence resend this same message alongside a sequence number of 10 marker tag 43=Y.
In example of PossResend, y'all may ship out an order, in 1 trial again let's tell alongside a sequence number of 10. After v seconds, y'all direct maintain non gotten an acknowledgement. So y'all may create upwardly one's heed to seek in 1 trial again because possibly the counterparty didn't have or got the starting fourth dimension time. So y'all volition ship out a message alongside a dissimilar sequence number similar 11, which volition comprise all of the same information message number 10 did. You volition thence score it every bit a PossResend. So this is proverb y'all direct maintain already sent this guild before, which Counter political party may or may non direct maintain processed.
While treatment of PossDups is dictated yesteryear session logic, PossResends are dictated yesteryear buisiness logic (e.g. Reject an Order if ClOrdID is duplicate etc). This is because it is upwardly to the draw of piece of job organisation layer to determine if a detail draw of piece of job organisation object has been processed (by checking the guild id for instance).
You direct maintain bought a stock at INR 100 together with desire to sell it every bit before long every bit it hits INR 110. If y'all desire to guarantee that your sell guild is filled, which of the next types of guild should y'all place?
In this example y'all tin forcefulness out non utilisation boundary guild because boundary guild doesn't guarantee execution if at that topographic point are similar LIMIT guild exists thence it volition hold off for its turn. You tin forcefulness out non either utilisation Market Order because it didn't give y'all Price guarantee together with volition fill upwardly on electrical current price. Solution is to utilisation "STOP" guild alongside halt cost 110, every bit before long every bit cost reaches 110 it volition acquire activate but inward example of high volatility it tin forcefulness out fill upwardly to a greater extent than or less 110 if cost is moving really fast.
Which of the next orders would live on automatically canceled if non executed immediately?
Fill or Kill (FOK) together with Immediate or Cancel (IOC) orders are types of guild which either executed at nowadays or acquire cancelled yesteryear exchange. TimeInForce (tag 59) inward FINANCIAL INFORMATION EXCHANGE (FIX) protocol is used to score an guild every bit FOK or IOC.
What is the deviation betwixt FOK guild together with IOC Order?
Main deviation betwixt FOK together with IOC Order is that FOK demands sum execution of guild i.e. all quantity has to live on filled piece IOC guild is ready to convey 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, short 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 together with Methods yesteryear Perry J. Kaufman
Linux Command Line Interface (CLI) Fundamentals
TCP/IP Networking for Developers
To larn to a greater extent than almost FINANCIAL INFORMATION EXCHANGE (FIX) protocol read my FINANCIAL INFORMATION EXCHANGE (FIX) protocol tutorial series
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