C++ Is Essential For Trading; You May Love It or Hate It
Language is the most important source of communication among human beings. Different countries have different languages. Similarly, we use different programming languages for effective communication with computers. Different computer languages are developed with a view to perform a wide range of functions. Notably, languages are divided into two categories such as low level languages and high level languages.
Especially, in the field of trading, a trader uses different types of languages, including C++, Java, C#, Python, MATLAB and R play in order to establish a strong trading system.
Among all these languages, C++ occupies a prime position in the financial industry. The use of C++ for quantitative finance is really commendable and most of the financial infrastructures are based on C++ codes that somebody needs to maintain.
You cannot neglect the study of C++ language for pricing derivatives. As an enterprise language, you can come across inheritance, which is a very commonly used paradigm in C++ and quantitative finance. It is also a bright example of a message-passing paradigm language. There are three different ways, including value, reference and pointer to pass data to a function in C++. All exhibit different characteristics when it comes to efficiency, storage and behaviour. C++ has a little known feature, named cmath library, which provides many mathematical constants that you can use for your quantitative finance programs. A common scenario in C++ is to create a container of user defined objects. Many of the concepts within quantitative finance are represented by functions and group of functions. Considerably, these functions vary from one another in a great way. As a federation of languages, it supports multi-paradigm programming. Some concrete examples of quantitative finance include pay-off functions, differential equation coefficients and matrices. For modelling functions, C++ presents us with a number of alternatives, like function pointers, function objects, Standard Template Library (STL) and C++11.
C++ provides encapsulation, which makes program more readable and stable. It also focuses to promote code reusability and it is being used as a useful language for big and complex projects. Especially, in the field of quantitative finance, C++ has left no stone unturned. With the rising demand of algorithmic trading software in India, C++ is becoming a must for traders across the country to sustain in the market.
