Quick Note: Did You Know on Exchange Trading Systems

Hi All,

Thought of posting this quick note. I think even most of regular traders are not aware that Stock Brokers connect with exchanges via dedicated leased lines that are connected directly to ensure seamless transfer of Data and Trades.

There are two connects that stock trading platforms like us make with Exchanges - Trade Feed (Interactive) & Data Feed (Broadcast). As the names suggests, via Trades Feeds is from where Transactions are sent to exchanges and Data Feeds is from where we receive Data Broadcasts like price updates, and so on.

We recently posted a update about status monitoring, now anyone can monitor our platforms connectivity with exchanges and also the status of Data & Trades: https://status-monitor.dhan.co/

Reason I post this note today is, these two feeds (Trade and Data) are independent of each other by its use case, so when, if or any reason you do not see a price update on stock trading platform, it possibly may be means that the data feed is slow or offline, but doesn’t mean that Trade feeds are down. You will still be able to send transactions to exchanges and they will get executed as long as the Stock Broker and Exchange are connected. Most users assume that if LTPs updates are not happening, trades may not get executed.

Just to give an example, few days back I tweeted about 75,000+ concurrent users on our trading systems. Post that, after 2 days on May 18 on expiry day SBI declared its results during market hours (it was an expiry day) and traffic in next 2 minutes surged up by 30%. It took a minute for the system to auto-scale and resulted in few users (less than 15 reported) not seeing price updates momentarily, however during all this while our transaction systems were up and trading was absolutely normal, at lightning fast speed as always.

I have always communicated that Stock Trading systems are one of the most complicated fintech products & systems out there. We understand that traders need reliable systems and we have built Dhan’s underlying systems and architecture in a way that we avoid single point failures as much as possible.

Hope this helps. Thank you


Much insightful Pravin ji. Thanks.