Summary
In this chapter, we have learned when algorithmic trading has an advantage over manual trading, what the financial asset classes are, the most used order types, what the limit order book is, and how the orders are matched by the financial exchange.
We have also discussed the key components of an algorithmic trading system – the core infrastructure and the quantitative infrastructure which consists of trading strategies, their execution, limit order book, position, PnL management, backtesting, post-trade analytics, and risk management.
In the next chapter, we will discuss the value of Python when it comes to algorithmic trading.