Electronic Trading in Financial Markets from edX

Taught by instructors with decades of experience on Wall Street, Electronic Trading in Financial Markets is a comprehensive study of the impact of technology on financial market systems.

This economics and finance course provides students with a foundation in market structure (what is ‘liquidity?’) before building to introduce electronic trading fundamentals (order books) and advanced electronic trading techniques (algorithmic trading). Learners will study the history of technology in markets, the details of electronic trading protocols and the impact of innovation on market structure.

This course is broken down into 6 modules:

Module 1: Fundamentals of Market Structure
Module 2: Fundamentals of Electronic Trading
Module 3: Mechanics of an Order Book
Module 4: Advanced Electronic Trading
Module 5: Electronic Trading in Fixed Income
Module 6: Innovation Guidelines

Upon completion of this course, participants will receive a certificate bearing the New York Institute of Finance (NYIF) name. A NYIF certificate, highly valued in the financial industry, will bolster a resume or LinkedIn profile and prove the skills you’ve gained to potential employers.

What you'll learn

Understand how financial markets functioned prior to the electronic trading era
Identify the major events in electronic trading development
Effectively describe the workflow of all major electronic trading protocols
Understand how market makers and retail traders use electronic trading and buy side institutions
Understand the characteristics of financial instruments that are traded on electronic markets & those products that do not trade electronically
Debate the current issues regarding electronic trading and the impact on financial stability

What's inside

Learning objectives

Understand how financial markets functioned prior to the electronic trading era
Identify the major events in electronic trading development
Effectively describe the workflow of all major electronic trading protocols

Understand how market makers and retail traders use electronic trading and buy side institutions
Understand the characteristics of financial instruments that are traded on electronic markets & those products that do not trade electronically
Debate the current issues regarding electronic trading and the impact on financial stability

Understand how financial markets functioned prior to the electronic trading era
Identify the major events in electronic trading development
Effectively describe the workflow of all major electronic trading protocols
Understand how market makers and retail traders use electronic trading and buy side institutions
Understand the characteristics of financial instruments that are traded on electronic markets & those products that do not trade electronically
Debate the current issues regarding electronic trading and the impact on financial stability

Syllabus

Module 1: Fundamentals of Market Structure Module 2: Fundamentals of Electronic Trading Module 3: Mechanics of an Order Book Module 4: Advanced Electronic Trading Module 5: Electronic Trading in Fixed Income Module 6: Innovation Guidelines

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Provides a comprehensive study of the impact of technology on financial market systems, suitable for learners seeking foundational knowledge in this field

Taught by experienced instructors with decades of experience in Wall Street, offering valuable insights into real-world practices

Offers a certificate bearing the New York Institute of Finance (NYIF) name, a highly valued credential in the financial industry, which can enhance career prospects

Suitable for learners interested in understanding the history, protocols, and impact of electronic trading in financial markets

Beginners can gain a foundational understanding of market structure and electronic trading fundamentals, while experienced learners can enhance their knowledge of advanced techniques

Learners can expect a multi-modal learning experience with videos, readings, discussions, and potentially interactive materials

Course explicitly requires learners to come in with extensive background knowledge first

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Electronic Trading in Financial Markets with these activities:

Practice using market data vendors

Show steps

This course uses trading platforms and extracting financial data. This will strengthen your foundational understanding of working with market data vendors.

Show steps

Review documentation for Bloomberg, Refinitiv, and FactSet
Download free trial to each vendor
Try out requesting data for instruments that you're familiar with

Review order processing

Show steps

Review the process of entering, changing, or canceling an order to refresh your understanding of electronic trading basics.

Show steps

Read the course materials on order entry, changes, and cancels.
Complete the practice exercises on order entry, changes, and cancels.
Use a stock market simulator to practice entering, changing, and canceling orders.

Identify market makers and retail traders

Show steps

Practice identifying different types of market participants to enhance your understanding of electronic trading dynamics.

Browse courses on Market Structure

Show steps

Review the characteristics of market makers and retail traders.
Analyze real-world trading data to identify market makers and retail traders.

Six other activities

Expand to see all activities and additional details

Show all nine activities

Create a portfolio tracking spreadsheet

Show steps

This project will help you apply what you are learning in this course immediately to trading in a practical and real-world way.

Browse courses on Portfolio Management

Show steps

Open up a free account with Google Sheets, Excel online, or Airtable
Design the columns of the spreadsheet for storing your trades
Write formulas and logic to calculate your profit and loss
Add charts that plot your returns and other visualizations

Learn about algorithmic trading

Show steps

Explore the world of algorithmic trading to gain insights into advanced electronic trading techniques.

Browse courses on Trading Algorithms

Show steps

Follow a tutorial on algorithmic trading basics.
Implement a simple algorithmic trading strategy using a programming language like Python.
Test and evaluate the performance of your algorithmic trading strategy.

Electronic Trading Simulations

Show steps

Practice simulated electronic trading to gain hands-on experience and apply the concepts covered in the course.

Show steps

Register for an online trading simulation platform.
Set up a virtual trading account and fund it with simulated currency.
Execute simulated trades using different electronic trading protocols.

Watch videos on algorithmic trading strategies

Show steps

This course covers algorithmic trading on an introductory level. These videos will expose you to real-world examples to accelerate your growth.

Browse courses on Algorithmic Trading

Show steps

Create a free account on YouTube or Vimeo
Search for videos on algorithmic trading strategies
Take notes and make a list of trading strategies that interest you

Practice Identifying Trading Protocols

Show steps

Reinforce your understanding of various electronic trading protocols by practicing their identification.

Show steps

Review the different electronic trading protocols covered in the course materials.
Gather a list of real-world examples of each protocol.
Practice matching the examples to the corresponding protocols.

Explore Advanced Trading Techniques

Show steps

Expand your knowledge by following tutorials on advanced electronic trading techniques.

Browse courses on Trading Strategies

Show steps

Identify areas where you want to enhance your skills.
Seek out reputable tutorials or online courses.
Follow the tutorials and practice the techniques.

Career center

Learners who complete Electronic Trading in Financial Markets will develop knowledge and skills that may be useful to these careers:

Financial Analyst

Financial Analysts study financial instruments to determine their value for potential investors. The knowledge gained from Electronic Trading in Financial Markets can help build the foundation of a successful Financial Analyst. The focus on liquidity, market structure, the mechanics of an order book, and current issues in electronic trading are all extremely relevant to this work.

See salaries and explore the career path for Financial Analyst

Financial Risk Analyst

Financial Risk Analysts work to identify and quantify the financial risk a company may be exposed to. By studying Electronic Trading in Financial Markets, future Financial Risk Analysts may be able to understand the risks and dynamics of the financial markets they will be working in.

See salaries and explore the career path for Financial Risk Analyst

Portfolio Manager

Portfolio Managers are responsible for managing investment portfolios for individuals or groups. The knowledge gained from Electronic Trading in Financial Markets can be extremely useful for building context and understanding market structure when making portfolio management decisions.

See salaries and explore the career path for Portfolio Manager

Quantitative Analyst

Quantitative Analysts leverage mathematical and statistical modeling to identify trading and investment opportunities for a company. The Electronic Trading in Financial Markets course can help build a foundation of financial markets knowledge and advanced electronic trading techniques that will be necessary for success in this role.

See salaries and explore the career path for Quantitative Analyst

Market Research Analyst

Market Research Analysts study market conditions and trends to inform business decisions, such as product development or marketing. The fundamentals of market structure and electronic trading covered in this course may be useful to understanding market conditions and trends.

See salaries and explore the career path for Market Research Analyst

Investment Banker

Investment Bankers guide and assist with the issuance and distribution of stocks, bonds, and other financial instruments for an organization or government. An understanding of market structure, electronic trading, and fixed income trading can be very useful for success in this role.

See salaries and explore the career path for Investment Banker

Compliance Officer

Compliance Officers ensure that their company complies with all relevant laws and regulations. The insights into the impact of electronic trading on market structure, innovation guidelines, and current issues in electronic trading may be useful to this role.

See salaries and explore the career path for Compliance Officer

Risk Manager

Risk Managers design and maintain the financial risk management program of a company. To be successful in this role, a strong understanding of market structure and electronic trading dynamics is essential.

See salaries and explore the career path for Risk Manager

Trading Strategist

Trading Strategists develop and research strategies for financial markets. The Electronic Trading in Financial Markets course may be useful to those wishing to enter this field by establishing a strong understanding of electronic trading fundamentals and advanced techniques.

See salaries and explore the career path for Trading Strategist

Trader

Traders buy and sell financial instruments in the pursuit of profit. The Electronic Trading in Financial Markets course can give aspiring Traders a deep understanding of the dynamics of electronic trading, which is extremely relevant to finding success in this role.

See salaries and explore the career path for Trader

Financial Planner

Financial Planners work with individuals to create and manage their financial plans. The knowledge of market structure and electronic trading from this course may be useful in understanding investment instruments and financial markets when planning for clients.

See salaries and explore the career path for Financial Planner

Investment Advisor

Investment Advisors provide financial advice to individuals and organizations. The Electronic Trading in Financial Markets course can be useful to Investment Advisors by providing a better understanding of the financial markets and how electronic trading has influenced the industry.

See salaries and explore the career path for Investment Advisor

Actuary

Actuaries use mathematical and statistical models to assess risk and uncertainty. The modules on market structure, electronic trading, and fixed income trading may be useful to understanding the dynamics of markets and different financial instruments.

See salaries and explore the career path for Actuary

Auditor

Auditors review a company's financial records and ensure they are accurate and compliant with regulations. The Electronic Trading in Financial Markets course may be useful for understanding how electronic trading has impacted financial markets and audit processes.

See salaries and explore the career path for Auditor

Economist

Economists study the production, distribution, and consumption of goods and services. The modules on market structure, electronic trading, and fixed income trading may be useful to understanding markets, trading, and financial instruments when conducting economic analysis.

See salaries and explore the career path for Economist