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

Traffic lights

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what should give you pause

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

Reviews summary

Electronic trading fundamentals and market structure

According to learners, this course provides a solid foundation in electronic trading and market structure. Many find the instructors knowledgeable due to their Wall Street experience. The course is described as a good overview, particularly for understanding the evolution and mechanics of electronic markets. However, some students suggest certain sections, like algorithmic trading or fixed income, could benefit from more depth or updated content for experienced professionals. The modular structure is generally well-received, breaking down complex topics. While valuable for understanding the landscape, some feel it is better suited for those newer to the specifics rather than seasoned practitioners seeking advanced techniques.

Course is well-organized into modules.

"The course is broken down into logical modules, which makes it easy to follow."

"I liked how the topics progressed logically from fundamentals to more advanced concepts."

"The structure helped me digest the information effectively."

"The segmentation into modules made managing the learning process simpler."

Offers a comprehensive look at the field.

"It provides a good overview of the history and current state of electronic trading."

"As an introduction to the subject, this course is quite comprehensive."

"The course covers a wide range of topics from market structure to advanced techniques."

"I found the breadth of topics covered helpful for understanding the overall picture."

Taught by instructors with real-world experience.

"The instructors' experience on Wall Street added immense value to the lectures."

"Learning from instructors who have decades of experience in the field is a major plus."

"Their insights felt very practical and grounded in real-world trading."

"I appreciated hearing perspectives directly from experienced professionals."

Provides a solid basis in market structure.

"I gained a solid foundation in electronic trading fundamentals and market structure from this course."

"The first few modules gave me a great understanding of how electronic markets work."

"Really helps solidify your understanding of market structure basics and order books."

"This course gave me the fundamental knowledge I needed to understand the electronic trading landscape."

Fixed income section could be expanded.

"Module 5 on Fixed Income felt less detailed compared to the equity-focused content."

"I wished the fixed income module had more examples or specific protocols."

"The coverage of electronic trading in fixed income markets was somewhat brief."

"Could benefit from more specific content regarding fixed income instruments."

Best suited for beginners or those new to topic.

"This course is probably best for someone with limited exposure to electronic trading."

"As an experienced professional, much of the early content was review for me."

"I felt the course catered more towards beginners than intermediate or advanced learners."

"If you already work in electronic markets, this might feel too basic."

Could go deeper into complex areas like algos.

"While the course is a good overview, I was hoping for more depth on algorithmic trading."

"Module 4 on Advanced Electronic Trading felt a bit superficial compared to the earlier modules."

"Could use more in-depth coverage on complex topics or optimization techniques."

"As someone with some background, I found the advanced sections lacked the detail I was seeking."

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

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

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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

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

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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

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

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

Six other activities

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Create a portfolio tracking spreadsheet

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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

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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

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

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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

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

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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

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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

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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

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

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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

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

Browse courses on Trading Strategies

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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