How are FPGAs Used in Trading?

At the other end of the spectrum will sit an ASIC or Application-specific Integrated Circuit. These are known to have higher potential speeds, and they are built with a single task in mind. The ASICs, however, cannot be changed and will take quite a good amount of money and time for development.

Now, FPGAs are the perfect middle ground. They contain thousands or even millions of core logic blocks (CLBs). These blocks are configured and combined to process every task that a CPU solves. The FPGAs do not have the added burdens of hardware. This makes them quick and effective in carrying out multiple tasks simultaneously. Ultra-low latency is another benefit of FPGAs. As a result of their programmability and flexibility, they can be used to achieve ultra-low latency. In fact, many exchanges are choosing FPGAs as an alternative to ASICs (application specific integrated circuit) to reduce latency and improve performance.

How FPGAs are used in high performance financial applications?

Stocks and securities are bought and sold based on speed and versatility only. And, this is the time when electronic trading is ruling the world, and decisions are being made in the blink of an eye. When the prices and the orders change, new information is fed from the exchanges and other sources to the companies via high-speed networks. This information arrives at a very high speed, and the time is measured in nanoseconds.