Request Throttling
Request Throttling is a control mechanism used by trading systems to proactively limit the rate of outgoing requests to an exchange to avoid hitting hard rate limits. By managing the flow of orders and cancellations, a trader can ensure that critical messages are always prioritized and sent without being blocked.
This involves implementing intelligent queue management and scheduling algorithms that dynamically adjust based on current market conditions and exchange feedback. If an exchange signals high load, a throttling system can automatically slow down non-essential requests to preserve bandwidth for execution.
It is a proactive risk management tool that ensures system continuity and reliability. Effective throttling is essential for operating complex strategies across multiple venues.