Why Is the Stateful Nature of FIX Often Preferred for Reliable Order Execution over Stateless Protocols?
The stateful nature of FIX means both the client and the exchange maintain a continuous session state, primarily tracked by sequence numbers. This ensures that every message is accounted for, preventing missed or duplicated orders.
If a connection drops, the sequence numbers allow for reliable recovery and 'Gap Fill' of missed messages. Stateless protocols lack this built-in mechanism for guaranteed delivery and sequence integrity.