Financial Data Central (Fix) Protocol Interview Questions Answers

Financial Information Exchange (FIX) Protocol Interview Questions too Answers
Some to a greater extent than Fix protocol interview question , I volition seat respond along when I'll acquire to a greater extent than or less fourth dimension for at nowadays only questions :) 

Now I own got updated it amongst answer, Please permit me know if you lot own got whatever doubt, or you lot own got other questions, you lot tin every bit good contribute past times whatever inquiry asked during any FINANCIAL INFORMATION EXCHANGE (FIX)  protocol interview.

What create 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 selection amongst to a greater extent than or less differences e.g. Warrants are unremarkably issued past times banks piece options are primarily traded inward exchange.

What is hateful past times Settlement of Securities? When Settlement does occur?
In Simple term Settlement agency coin volition deducted from buyers too concern human relationship too security(Shares) volition hold upwardly credited to his 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 later merchandise date) , T denotes Trade appointment agency the appointment on which transaction has taken place.
For to a greater extent than or less of the exchanges e.g. NSE India, SEHK Hongkong its T+2.

What is NewOrderSingle, OrderCancelReplance too 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 too its used to house an Order, OrderCancelReplace Request is modification asking denoted past times MsgType=G inward FINANCIAL INFORMATION EXCHANGE (FIX) protocol too used to modify Order e.g for changing quantity or cost of Order.

OrderCancelRequest is 3rd inward this category denoted past times MsgType=F inward FINANCIAL INFORMATION EXCHANGE (FIX) protocol too used to cancel Order placed into Market.

What are most common issues run into when 2 FIX Engine communicates ?
When Clients connect to broker via FINANCIAL INFORMATION EXCHANGE (FIX) protocol, at that spot FIX engine connects to each other, piece setting upwardly too during farther communication many issues tin occur below are to a greater extent than or less of most mutual ones:
Issues related to network connectivity
Issues related to Firewall rules
Issue related to wrong host/port refer piece connecting.
Incorrect SenderCompID too TargetCompID
Sequence Number mismatch
Issue related to FINANCIAL INFORMATION EXCHANGE (FIX) version mismatch

What create you lot hateful past times Incoming Sequence No too Outgoing Sequence No? Which tag is used to deport Sequence No?
Sequence Number is really of import concept of FINANCIAL INFORMATION EXCHANGE (FIX) protocol which essentially provides it Recovery too replay functionality too 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 sequence number into 2 Incoming too Outgoing Sequence number. 
Incoming sequence number is the number whatever FIX Engine expecting from Counter Party too Outgoing sequence number is the number whatever FIX engine is sending to Counter Party.

What happens if Client connects amongst Sequence No higher than expected?
If Client FIX Engine connects to Broker Fix Engine amongst Sequence Number higher than expected (e.g. broker is expecting Sequence Number = 10 too Client is sending = 15). As per FINANCIAL INFORMATION EXCHANGE (FIX)  protocol Broker volition convey the connexion too effect a Resend Request (MsgType=2) asking Client to resend missing messages (from messages 10 -15) , Now Client tin either replay those messages or tin effect a Gap Fill Message (MsgType=4 every bit per FINANCIAL INFORMATION EXCHANGE (FIX)  protocol) inward example replaying those messages  doesn't brand whatever feel (could hold upwardly admin messages e.g. Heartbeat etc).

What create you lot hateful past times Funari Order type?
Funari is really pop Order type commonly used inward Japanese too Korean marketplace , 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 catamenia , if at that spot is whatever unexecuted quantity thence it volition plough into a Market Order.

What create you lot hateful past times Odd lot too Board lot?
In Exchanges every Security traded inward lot e.g. lot of 1, 10 or 100 or 1000. These are called Board lots too piece placing social club clients demand to transportation Order quantity multiple of Board lot. If Clients sends whatever Order which is non a multiple of Board lot thence its called Odd lot.

What happens if Client connects amongst Sequence No lower than expected?
If Client FIX engine connects to broker FIX engine amongst Sequence No lower than expected than broker FIX engine volition disconnect the connection. As per FINANCIAL INFORMATION EXCHANGE (FIX) protocol customer thence may travail past times increasing its sequence Number until broker accepts its connection.

What is the departure betwixt PossDup too PossResend?
As per FINANCIAL INFORMATION EXCHANGE (FIX) protocol PossDupFlag (tag 43): indicates possible retransmission of message amongst 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 to a greater extent than or less other sequence number.
                                    Valid Values:
                                    Y=Possible resend
                                    N=Original transmission

In Simple terms PossDup is when you lot are resending a message too PossResend is when you lot are sending a novel message amongst same information you lot own got already sent inward a previous message.

Let’s regard below usage example for clarity with PossDup, you lot tin transportation out an social club amongst Sequence number of 10. Then you lot transportation to a greater extent than or less other message amongst a number of 11. For to a greater extent than or less argue the counter party did non have message 10 too volition asking a resend. You volition thence resend this same message amongst a sequence number of 10 marker tag 43=Y.

In example of PossResend, you lot may transportation out an order, over again let's tell amongst a sequence number of 10. After v seconds, you lot own got non gotten an acknowledgement. So you lot may create upwardly one's heed to travail over again because perhaps the counterparty didn't have or got the outset time. So you lot volition transportation out a message amongst a dissimilar sequence number similar 11, which volition incorporate all of the same information message number 10 did. You volition thence score it every bit a PossResend. So this is maxim you lot own got already sent this social 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 upwardly to the concern layer to determine if a item concern object has been processed (by checking the social club id for instance).

You own got bought a stock at INR 100 too desire to sell it every bit before long every bit it hits INR 110. If you lot desire to guarantee that your sell social club is filled, which of the next types of social club should you lot place?
In this example you lot tin non usage boundary social club because boundary social club doesn't guarantee execution if at that spot are similar LIMIT social club exists thence it volition hold off for its turn. You tin non either usage Market Order because it didn't give you lot Price guarantee too volition fill upwardly on electrical flow price. Solution is to usage "STOP" social club amongst halt cost 110, every bit before long every bit cost reaches 110 it volition acquire activate but inward example of high volatility it tin fill upwardly to a greater extent than or less 110 if cost is moving really fast.

Which of the next orders would hold upwardly automatically canceled if non executed immediately?
Fill or Kill (FOK) too Immediate or Cancel (IOC) orders are types of social club which either executed at in i trial or acquire cancelled past times exchange. TimeInForce (tag 59) inward FINANCIAL INFORMATION EXCHANGE (FIX) protocol is used to score an social club every bit FOK or IOC.

What is the departure betwixt FOK social club too IOC Order?
Main departure betwixt FOK too IOC Order is that FOK demands amount execution of social club i.e. all quantity has to hold upwardly filled piece IOC social club 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 to a greater extent than or less manual interaction for whole merchandise life wheel e.g. everything later submission of Order e.g. processing, execution, booking, allocation, short town occurs automatically.

NON STP systems require manual interaction on to a greater extent than or less phases of merchandise life wheel e.g. booking or settlement.

Further Learning
The Fix Guide: Implementing the FIX Protocol 2nd Edition
Building Winning Algorithmic Trading Systems
Trading Systems too Methods past times 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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