
About how much it would cost to develop software for trading stock options?
About how much it would cost to develop software that can do calculations about 1000 per second, making the dynamic information from the web or other trading platform and trading derivatives stocks through a brokerage for yourself? Thank you. These responses are of little help. An estimate of someone who knows about the software would be ideal. Thank you.
That would not be cheap. Reason why a previous poster suggested looking at COTS products already on the market. Here are some hypotheses on the basis of entry: 1) It is a real time system that acts on the input power requirements and has no luxury to historical data. 2) Have an idea for a strategy existing trade and recognized that can be expressed in code. 3) The system is a dedicated trade Plaform workhorse who does nothing but trade in its strategy (# 2 above), so there is no graphical user interface of fancy graphics, and library of technical indicators trillion. 4) Do you have some other program to report on the trades, make reports NLP, etc. The new system will only trade in their strategy and generate a single record in a database for each trade done. Having said that There are three basic areas of development: 1) real time data feed. Most commercial sources have an API for streaming data. Although not is trivial, usually have a lot of sample code. Probably about 2 weeks time. 2) the implementation of its trading system. This is the greatest unknown, only here would spoil a total of 4 weeks. 3) interface agent, using a pseudo-standard here as FIX. I suggest looking Quickfix from your code open and has broad support. This depends on your broker and how well they support FIX. Since this is more a question of integration of a coding problem I go with 4 weeks. Throw in 2 weeks to test and debug and you are looking at a minimum 3-months or 480 hours. Assuming you get someone who knows what their doing and not a trick that charges $ 20 per hour and can barely spell "C #", let alone designing a system from scratch, you're looking for someone in the range of hours $ 100 /. round and say $ 50,000 I've been programming for 25 years and for 14 of those years I had my own software consulting company, so I think this is probably the minimum to get something going. Of course, the other side is the question is why you'd want to do this. I'm assuming your person individual (retailer) and not a hedge fund. Have you thought about the latency of premises and the costs of commission? The big boys who do this have their commerce servers co-located next to the exchange and are constantly trying to shave 1 or 2 milliseconds off their times of execution to beat all others in the order book. The strike also offers incredible discounts with key intermediaries commisisons you and I never will see. That is the great obstacle to a retailer to try anything, such as low latency, high frequency things involved.
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