As we saw in Chapter 7, Building a Trading System in Python, a trading system is a piece of software that is capable of collecting financial data and sending orders to the market. This trading system has many functional components that are in charge of handling trading and risks, as well as monitoring the trading process that happens on one or many exchanges. When you code a trading strategy, it will become a component of the trading system. You will need input price information and your trading strategy as output. This will send trading indications. To complete this flow, we require gateways since they are the main components.
The following diagram shows the functional components of a trading system, the gateway's interface, and the outside world with the trading system. The gateways collect prices and market responses...