What Is WebSocket: Guide to Using WebSocket on Market Financial Data

 

With WebSocket, an entire market can be asked for without any limitations concerning the number of symbols requested. In fact, over 6000 symbols are at your disposal with the typical Websocket feed.

 

When dealing with real-time transaction rates over an optimal period of time your standard Python language would be not useful. What does it mean? The median transaction trade rate can’t be consumed without a rapid burst of data needing to be processed. These rapid busts can in turn result in an entire backlog of data that needs to be processed, and eventually long delays. These delays disrupt the analyzing and processing of live data, which could be a huge detriment to the financial world. So let’s see in detail what is WebSocket and how to use it.

 

Contents:

HTTPS & Websocket

Using Websocket

Putting It All Together

Final Thoughts

 

HTTPS & Websocket

All data transmitted over the internet is sent and received using a specific set of commands, also known as a protocol. Each protocol is assigned a specific port number. For example, all website data transferred over HTTP uses port 80. HTTP and WebSocket are communication protocols developed for usage in client-server communication.

 

The HTTP protocol is simple enough. HTTP is just a human-readable text sent back and forth between the web browser and the webserver.  HTTP is considered to be the application layer protocol. It's the language that the web servers and the client-server speak.

 

WebSocket is a bidirectional and full-duplex protocol. It’s applied in the same way as client-server communication. In contrast to HTTP, it begins from ws:// or wss://. It’s a stateful protocol that connects between client and server and keeps alive until it’s terminated by either party (client or server). After the connection is closed by either the client or server, the connection is ending from both ends.

 

The WebSocket could be applied in:

  • Real-time web apps
  • Game apps
  • Chat apps
  • Trading applications

 

Using Websocket

Websockets are defined as a form of technology that facilitates bidirectional communication in a TCP socket. Its very nature is such that it can be used by any server, browser or client that requires it. This is only one of the few advantages that come with using WebSockets on market financial data. Other benefits include the following:

  • They have prime two-way communication;
  • The speed at which data is sent and received is faster than most languages including HTTP;
  • They replace long polling;
  • Because they are data typed, WebSockets limit sending from languages like AJAX.

 

These benefits are enough to cause you to use WebSockets. However, HTTP is easier to access and develop due to its ability to create simple protocols and the presence of AJAX mechanisms.

 

Putting It All Together

When it comes to incorporating WebSockets into your work, they must be enhanced to a certain degree in order to forward millions of trades per second. This can be achieved by using kernel

TLS decrypts data without unnecessary copying.

 

If the WebSocket library is to be considered normal, the abstraction would require a few things. These include the following:

  • Allocate a new functional buffer
  • Giving clients access to WebSocket frame
  • A WebSocket frame that is free of client influence and
  • A repeat

 

When the trading day begins, the newly formed data analyzer can now be put to the test at multiple points. The best test is usually through monitoring the information as batches. In this case, there are three batches of data that are monitored throughout the day at a relatively steady rate or median level.

 

At some point, a curveball is thrown in the form of a sudden burst of data spike. These spikes will be encountered more often than not in the real world and really put the WebSocket framework to the test.

 

However, the ultimate test will be that of the maximum performance variety. This test is designed to show the rate at which trades are sent and received. This can be accomplished by feeding millions of trades into a connection to prove the worth of the WebSocket.

 

Final Thoughts

It's clear that among the many languages developed for use in the financial world, WebSockets are becoming more prominent. Despite their rising popularity, they are yet to truly break into the mainstream and there are a few reasons for this.

 

Despite its ability to handle millions of trades per second, people would much rather use HTTP and other languages for their relative ease. In fact, most clients of other languages tend to overlook how difficult it is for an HTTP to handle random spikes in the market trading day.

 

As such it is recommended that all parties in financial transactions have an open mind and attempt to expand their horizons. Building systems using WebSockets can help not only process millions of trades per second but handle random data spikes.


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