Monday, March 20th, 2017

About how much would it cost to develop a software for stock options trading?

About? Cu? Nt cost? A software development easier than ever to make an about 1000 c? Calculations per second, making the information? N din? Site mica or other negotiation platform, use, and trade equity derivatives through? s a s house values? same? Gracias.Estas answers are of little help. An estimate? N someone you know about the software be? To the ideal. Thanks.


2 Responses to “About how much would it cost to develop a software for stock options trading?”
  1. You did what? RTFM! says:

    Why develop one if it already exists? Have you researched to find if one is available on the platform you want? It would obviously be cheaper that way.

  2. Jeff S says:

    It would not be cheap. Which is why a previous poster suggested looking at COTS products already on the market.

    Here’s some assumptions based on your post:
    1) This is a real-time system that acts on the incoming feed and doesn’t have any fancy requirements for historical data.
    2) You have some idea for an already existing and proven trading strategy that can be expressed in code.
    3) The system is a dedicated workhorse trading plaform that does nothing but trade your strategy (#2 above), so there’s no fancy gui of charts, and library of a zillion technical indicators.
    4) You have some other program to report on trades, do PnL reports, etc. The new system will only trade your strategy and generate a simple record in a database for each trade made.

    That said there’s three core areas of development:

    1) The real-time data feed. Most commercial sources have an API for their streaming data. Although not trivial they usually have plenty of example code. Probably about 2 weeks of time.

    2) Implementing your trading system. This is the biggest unknown, just a swag here would be a full 4 weeks.

    3) Broker interface, use a pseudo-standard here like FIX. I suggest looking at QuickFIX since its open source and has wide support. This depends on your broker and how well they support FIX. Since this is more an integration issue than a coding issue I go with 4 weeks.

    Throw in 2 weeks for testing and debugging and you’re looking at a minimum of 3 man-months or 480 hours.

    Assuming you get someone who knows what their doing and not some hack who charges $20 an hour and can barely spell “C#”, let alone design a system from scratch, you’re looking at someone in the $100/ hour range.

    Round it off and say $50,000

    I’ve been programming for 25 years and for 14 of those years had my own software consulting company, so I feel this is probably the minimum to get something up and running.

    Of course the other side is the question is why you’d want to do this. I’m assuming your an individual person (retail trader) and not a hedge fund. Have you thought about the latency of trading remotely and the commision costs? The big boys that do this have their trading servers co-located nextdoor to the exchange and are constantly trying to shave 1 or 2 milliseconds off their execution times to beat everybody else into the orderbook. They also strike incredible discount deals on commisisons with their prime brokers that you and I will never see. That’s the big hurdle for a retail trader to try anything like the low-latency, high frequency stuff that you imply.

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