Product hierarchy

Products in MarketGrid are a set of tables that define the entities that are traded using the System. This page details the different product tables and the relationships between them.

Instruments

In MarketGrid, the things that are traded are known as Instruments. Examples of Instruments are:

• A class of shares in an individual company such as BHP
• A futures contract, such as a December Nikkei 225 contract
• A currency pair such as USD
• A basket of diamonds

Every Instrument must belong to one and only one InstrumentGroup.

InstrumentGroups

The Instruments in MarketGrid are grouped into like types known as InstrumentGroups. Every Instrument belongs to one InstrumentGroup. For example, an InstrumentGroup called Equities might be used to group all the Instruments that are the shares in companies. Similarly, an InstrumentGroup called Currencies might be used to group all the currency Instruments.

Grouping Instruments into InstrumentGroups facilitates setting of parameters that affect the trading of a particular group.

The relationship between Instruments and InstrumentGroups is illustrated below.

graph TD
  IGX[Instrument Group X]:::darkgreen --> I1[Instrument 1]:::green
  IGX --> I2[Instrument 2]:::green

  IGY[Instrument Group Y]:::darkblue --> I3[Instrument 3]:::blue
  IGY --> I4[Instrument 4]:::blue

  IGZ[Instrument Group Z]:::darkpink --> I5[Instrument 5]:::pink
  IGZ --> I6[Instrument 6]:::pink

  classDef green fill:#dfd
  classDef darkgreen fill:#bdb
  classDef blue fill:#ddf
  classDef darkblue fill:#bbd
  classDef pink fill:#fdf
  classDef darkpink fill:#dbd

Industries

Instruments in MarketGrid may be categorised by Industry. This is useful for some types of Instruments, for example, equities, where the Instruments (listed companies) are categorised into industries such as Finance, Manufacturing, Mining and so forth. Classifying Instruments by Industry may be useful for certain analytics, such as calculation of indices.

Sectors

Industries in MarketGrid may be further sub-categorised by Sector. For example, a Finance Industry classification may be further sub-categorised into Insurance and Banking.

Markets

MarketGrid allows Instruments to trade in different ways simultaneously through the use of Markets.

In each Market that an Instrument trades, different rules and parameters may apply. Thus, an Instrument may belong to many Markets and each Market may contain many Instruments - a many-to-many relationship.

In MarketGrid, the actual tradable Products are the instances of Instruments in Markets, each of which is known as an InstrumentMarket.

For example, in equities trading, sometimes the Instruments (companies that are traded) might trade in lots of 1,000 shares, but there may also be the possibility to trade in units of single shares. In MarketGrid, this could be done by having two Markets – a REGULAR (1,000 lots) Market and an ODDLOT Market – and by adding the relevant Instruments to each of those Markets.

InstrumentMarkets

An Instrument that has been added to a Market is known as an InstrumentMarket in MarketGrid. It is InstrumentMarkets that are the entities that are actually traded in MarketGrid, i.e., the entities for which orders are entered into the Trading System. Each InstrumentMarket has an associated order book.

The relationship between Instruments, Markets and InstrumentMarkets is illustrated in the diagram below.

graph TD
  subgraph A1[Market A1]
    IM1A1[InstrumentMarket 1-A1]:::green
    IM2A1[InstrumentMarket 2-A1]:::green
    IM3A1[InstrumentMarket 3-A1]:::blue
    IM4A1[InstrumentMarket 4-A1]:::blue
    IM5A1[InstrumentMarket 5-A1]:::pink
    IM6A1[InstrumentMarket 6-A1]:::pink
  end
  classDef green fill:#dfd
  classDef darkgreen fill:#bdb
  classDef blue fill:#ddf
  classDef darkblue fill:#bbd
  classDef pink fill:#fdf
  classDef darkpink fill:#dbd

graph TD
  subgraph A2[Market A2]
    IM1A2[InstrumentMarket 1-A2]:::green
    IM2A2[InstrumentMarket 2-A2]:::green
    IM3A2[InstrumentMarket 3-A2]:::blue
    IM4A2[InstrumentMarket 4-A2]:::blue
    IM5A2[InstrumentMarket 5-A2]:::pink
    IM6A2[InstrumentMarket 6-A2]:::pink
  end

  classDef green fill:#dfd
  classDef darkgreen fill:#bdb
  classDef blue fill:#ddf
  classDef darkblue fill:#bbd
  classDef pink fill:#fdf
  classDef darkpink fill:#dbd