Zerodha Stock Broker System Design with

In this video, we discuss the high-level design of Zeroda, a stock broker app. We start by talking about the app's capabilities, including features like watchlists, market depth, stock performance analysis, buying and selling stocks, and portfolio management. We also mention the order book and trade book, which track orders and transactions.

We explain that Zeroda acts as a broker between clients and stock exchanges like the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Zeroda takes orders from clients and places them with the exchanges. The market depth feature allows users to see the number of orders and their prices in the market. This information helps users make informed decisions about buying or selling stocks.

We discuss different types of orders, such as market orders and limit orders. Market orders involve buying or selling at the current market price, while limit orders allow users to set a specific price at which we want to buy or sell stocks. We also mention the importance of real-time stock price updates and the need for a fast and reliable system architecture.

Towards the end of the video, we briefly touch on the challenges of connecting to stock exchanges, including the cost of acquiring permissions and the need for reliable communication lines. We mention that exchanges strive for fairness by ensuring equal wire lengths for all brokers to minimize the latency of updates.

The video sets the stage for a discussion on designing the high-level system architecture of Zeroda, focusing on real-time data updates and communication with stock exchanges.

00:00 Intro
00:48 Stockbroker Requirements
12:11 Joke - Message queues aren't free?
12:44 Some trivia about stock machines
15:00 WebSockets for stock updates?
20:00 Capacity estimation of updates
23:30 Order Management
26:09 Some more trivia - War Story
28:30 Deciding on service boundaries
36:36 Message Queue - needed?
40:55 Cache - Global caching?
44:39 Executing orders
50:53 Real-life connection purchasing
52:52 Deep dive into watch lists
59:14 Eventual consistency for updates?
1:02:40 TCP vs. UDP for watch lists?
1:03:48 Validating the architecture
1:05:44 InterviewReady Discount!

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