Loose Coupling vs Microservices Architecture

An architectural design principle where trading system components interact through well-defined interfaces with minimal interdependencies—enabling independent modification, replacement, and testing of system parts without cascading failures across the entire system.

A software architecture approach where trading systems are decomposed into small, independently deployable services—each handling specific functions like order execution, risk management, or position tracking—communicating through well-defined APIs rather than existing as single monolithic applications.