Current Date :June 13, 2024

Importance of Testing in Trading and Stocks Market Systems

Thanks to billions of applications out there to provide thousands of services, you can now have every possible need met by your smartphone. Similarly, there are innumerable trading systems as well that do the job of providing you with all that you need to be a successful investor, trader or even a broker.

Most applications offer multiple services with a myriad of features like multi-product listicles and multi-user options, you can most certainly open, manage and close market positions on the go. However, with incredible volumes of data flowing through the application, managing it is quite a task and this is where testing plays an important role.

Building a successful trading system

The key to building a successful trading system is to make it robust enough to process high volumes of data effectively with low-latency. With thousands of traders using real-time market data to manage money, there is a continuous growth in the volume of trades in the market and it has to reflect on the app in real-time.

To run all this efficiently, there are complex algorithms and rules that help in matching the buying and selling options as seen in the real world. On top of that, it has to manage the cancelation and replacement of trades as well.

Furthermore, with the advent of automated trading applications, the application has to be monitored round the clock. Market fragmentation and considerable changes in the algorithmic trading has only added on to the complexities in the trading systems. As a result, the applications have to evolve with the technological advancements so as to deliver real-time results to the users.

One cannot deny the fact that time is money in trading, as even the slightest of delays in taking a decision can make or break a business. Naturally, customers expect top notch-performance from the application 24×7. However, there are many challenges that such trading systems face, and these can only be solved by using a robust testing strategy that keeps a tab on all the functionalities of the app.

Let us have a look at some of the most impactful challenges that a trading application or a trading system in general faces.

Major challenges faced by Trading Systems

  • Handling all the business challenges that affect real-time trading
  • Difficulty in building a domain competence and then maintaining it as well
  • Handling technical challenges caused due to complex scenarios and interface gateways
  • Issues that arise when multiple systems work through various interfaces and gateways
  • Managing multiple APIs at a time
  • Performance issues due to poor latency levels and inaccurate handling of SLAs
  • Difficulty in testing when it comes to legacy applications
  • Network performance issues
  • Regulatory compliance issues based on the locality where the app is used
  • Third-party application issues that in turn affects the trading system or application

Why is testing needed for Trading Systems?

A trading application is one of the most complex applications one can think of, as it must process huge amounts of data in real-time to avoid blunders that can result in incredible loss of money and reputation for the user. Such systems have to provide real-time data that is accurate down to the T.

Additionally, complex business flows and rules make the application even more complex. As a result, the application has to be tested by efficient and experienced testers for a myriad of features, so as to ensure smooth functioning of the application and provide the much-needed edge to the user in his trading options and purchases.

How to go about testing Trading Systems?

While testing a trading system or application, the four major testing cycles that have to be used are functional, interface, security and performance testing. No trading app can run without going through these tests, as they check for the functionality, trading system performance, speed and security of the system.

Regression Testing

The best way to go about testing trading systems is by opting to create multiple smoke and unit tests to first check the functionalities of the application. Once this is done, continuous regression testing should be performed simultaneously to ensure that the existing functionalities perform the way they are intended to even with the addition of new functions.

Interface Testing

Interface testing plays a key role in ensuring the quality in a trading application, as the idea is to create an interface for the user that is as close to the real world as possible. It also focuses on delivering accurate data points from the real-world trading markets.

Security Testing

While performing security testing, the focus should be on threat analysis and vulnerability analysis to prevent any loss of data. Penetration testing can also be included so as to avoid the possibility of hacking into the system.

Performance Testing

The performance testing should involve testing of the main application, its subsystems and the various interfaces that interconnect these subsystems.


When it comes to trading systems, there is another kind of testing called backtesting, which mainly focuses on verifying how a system behaves when run for an older set of data from a specific time period. Simply put, it is a simulation of the actual trading system. This is a common practice in the testing world of trading systems.

Now that you know the importance of testing in trading and stocks market systems, you should definitely get your trading application tested for all such tests before releasing it to the public. To avail the best services, you may get in touch with TestUnity, a company that that expertise in testing such highly complex applications.


Testunity is a SaaS-based technology platform driven by a vast community of testers & QAs spread around the world, powered by technology & testing experts to create the dedicated testing hub. Which is capable of providing almost all kind of testing services for almost all the platforms exists in software word.

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