WebSocket Vs REST

WebSocket and REST represent two fundamental communication paradigms used in financial data transmission. REST is a request-response protocol where a client asks for data and the server provides a snapshot, making it ideal for occasional queries like checking account balances.

WebSocket establishes a persistent, full-duplex connection between the client and server, allowing for real-time, bidirectional data streaming. In high-frequency crypto trading and options markets, WebSockets are essential for receiving live order book updates and trade execution signals without the latency overhead of repeated HTTP handshakes.

REST is typically stateless and easier to scale for static data, while WebSockets maintain state to ensure instantaneous delivery of volatile market data. Understanding this distinction is critical for architects building low-latency trading engines or monitoring liquidity across decentralized exchanges.