Binary Serialization
Binary serialization is the process of converting complex data structures into a compact, binary format for efficient transmission over a network. In financial systems, using human-readable formats like JSON is often too slow and consumes too much bandwidth.
Binary formats reduce the size of messages, allowing more information to be sent in less time. This is vital for maintaining low-latency communication between trading algorithms and exchange gateways.
By using fixed-width fields and specific byte alignments, systems can parse these messages with minimal CPU overhead. This technique is standard in professional-grade trading protocols to ensure maximum throughput.
It directly impacts the message parsing efficiency of the entire stack. Proper implementation prevents bottlenecks during periods of high market volatility.