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October 20, 2024
•
NordVarg Engineering Team
•

Type Safety Across Languages: A Comparative Analysis for Financial Systems

Comparing type systems in C++, Rust, OCaml, Python, and TypeScript, and how static typing prevents bugs in mission-critical financial applications.

Type SystemsType SafetyC++RustOCamlPythonTypeScriptStatic Typing
13 min read
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Type Safety Across Languages: A Comparative Analysis for Financial Systems

In financial systems, bugs aren't just inconvenient—they're catastrophic. A type error can result in incorrect trades worth millions, wrong account balances, or compliance violations. This article compares type systems across five languages commonly used in fintech and explores how static typing prevents entire categories of bugs.

The Cost of Type Errors#

Before diving into languages, let's understand what we're protecting against:

cpp
1// A real bug from a production trading system (simplified)
2double calculatePnL(double entryPrice, double exitPrice, int quantity) {
3    return (exitPrice - entryPrice) * quantity;
4}
5
6// Later in the codebase...
7double pnl = calculatePnL(quantity, exitPrice, entryPrice);  // Arguments swapped!
8

This compiled without warnings and ran in production for weeks before discovery. The cost? Incorrect P&L calculations affecting thousands of accounts.

C++: Compile-Time Safety with Modern Features#

C++20 Concepts#

Modern C++ provides powerful compile-time guarantees:

cpp
1#include <concepts>
2#include <string>
3#include <chrono>
4
5// Define concepts for financial types
6template<typename T>
7concept MonetaryValue = std::is_arithmetic_v<T> && requires(T a, T b) {
8    { a + b } -> std::convertible_to<T>;
9    { a - b } -> std::convertible_to<T>;
10    { a * b } -> std::convertible_to<T>;
11};
12
13template<typename T>
14concept Identifier = requires(T id) {
15    { id.toString() } -> std::convertible_to<std::string>;
16    { id.isValid() } -> std::convertible_to<bool>;
17};
18
19// Strong type wrappers
20template<typename T, typename Tag>
21class StrongType {
22    T value_;
23    
24public:
25    explicit StrongType(T value) : value_(value) {}
26    
27    T get() const { return value_; }
28    
29    // Only allow operations between same types
30    StrongType operator+(const StrongType& other) const {
31        return StrongType(value_ + other.value_);
32    }
33    
34    StrongType operator-(const StrongType& other) const {
35        return StrongType(value_ - other.value_);
36    }
37    
38    // Prevent implicit conversions
39    template<typename U, typename OtherTag>
40    StrongType operator+(const StrongType<U, OtherTag>&) = delete;
41};
42
43// Domain types
44struct PriceTag {};
45struct QuantityTag {};
46struct AccountIdTag {};
47
48using Price = StrongType<double, PriceTag>;
49using Quantity = StrongType<int64_t, QuantityTag>;
50using AccountId = StrongType<std::string, AccountIdTag>;
51
52// Type-safe PnL calculation
53template<MonetaryValue T>
54double calculatePnL(Price entryPrice, Price exitPrice, Quantity quantity) {
55    return (exitPrice - entryPrice).get() * quantity.get();
56}
57
58// This won't compile - type mismatch!
59// auto pnl = calculatePnL(quantity, exitPrice, entryPrice);  // ✗ Compile error
60

Constexpr for Compile-Time Validation#

cpp
1class CurrencyPair {
2    std::string pair_;
3    
4    static constexpr bool isValidCurrency(std::string_view curr) {
5        return curr == "USD" || curr == "EUR" || curr == "GBP" || 
6               curr == "JPY" || curr == "CHF";
7    }
8    
9public:
10    constexpr CurrencyPair(std::string_view base, std::string_view quote)
11        : pair_(std::string(base) + "/" + std::string(quote)) {
12        if (!isValidCurrency(base) || !isValidCurrency(quote)) {
13            throw std::invalid_argument("Invalid currency");
14        }
15    }
16    
17    constexpr std::string_view value() const { return pair_; }
18};
19
20// Validated at compile time!
21constexpr CurrencyPair EURUSD("EUR", "USD");  // ✓ OK
22// constexpr CurrencyPair INVALID("XXX", "USD");  // ✗ Compile error
23

std::variant for Sum Types#

cpp
1#include <variant>
2#include <optional>
3
4struct OrderPending {
5    std::chrono::system_clock::time_point submittedAt;
6};
7
8struct OrderAccepted {
9    std::string orderId;
10    std::chrono::system_clock::time_point acceptedAt;
11};
12
13struct OrderFilled {
14    std::string orderId;
15    Price fillPrice;
16    std::chrono::system_clock::time_point filledAt;
17};
18
19struct OrderRejected {
20    std::string reason;
21    std::chrono::system_clock::time_point rejectedAt;
22};
23
24using OrderStatus = std::variant<
25    OrderPending,
26    OrderAccepted,
27    OrderFilled,
28    OrderRejected
29>;
30
31struct Order {
32    std::string symbol;
33    Quantity quantity;
34    OrderStatus status;
35};
36
37// Type-safe status handling with visitor pattern
38std::optional<std::string> getOrderId(const Order& order) {
39    return std::visit([](auto&& status) -> std::optional<std::string> {
40        using T = std::decay_t<decltype(status)>;
41        if constexpr (std::is_same_v<T, OrderAccepted> || 
42                      std::is_same_v<T, OrderFilled>) {
43            return status.orderId;
44        } else {
45            return std::nullopt;
46        }
47    }, order.status);
48}
49

Rust: Safety Without Garbage Collection#

Rust's ownership system prevents entire classes of bugs at compile time:

rust
1use std::marker::PhantomData;
2
3// Phantom types for zero-cost abstractions
4struct USD;
5struct EUR;
6struct GBP;
7
8#[derive(Debug, Clone, Copy)]
9struct Money<Currency> {
10    amount: i64,  // Store as cents to avoid floating point
11    _currency: PhantomData<Currency>,
12}
13
14impl<C> Money<C> {
15    fn new(dollars: i64, cents: i64) -> Self {
16        Self {
17            amount: dollars * 100 + cents,
18            _currency: PhantomData,
19        }
20    }
21    
22    fn amount_cents(&self) -> i64 {
23        self.amount
24    }
25    
26    // Only allow adding same currency
27    fn add(self, other: Money<C>) -> Money<C> {
28        Money {
29            amount: self.amount + other.amount,
30            _currency: PhantomData,
31        }
32    }
33}
34
35// Prevent mixing currencies at compile time
36fn calculate_total(prices: Vec<Money<USD>>) -> Money<USD> {
37    prices.into_iter()
38        .fold(Money::new(0, 0), |acc, price| acc.add(price))
39}
40
41// This won't compile!
42// let usd = Money::<USD>::new(100, 0);
43// let eur = Money::<EUR>::new(100, 0);
44// let total = usd.add(eur);  // ✗ Compile error: mismatched types
45

Newtype Pattern#

rust
1// Wrapper types that prevent mixing
2#[derive(Debug, Clone, Copy, PartialEq, Eq, PartialOrd, Ord)]
3struct AccountId(u64);
4
5#[derive(Debug, Clone, Copy, PartialEq, Eq, PartialOrd, Ord)]
6struct OrderId(u64);
7
8#[derive(Debug, Clone, Copy)]
9struct Price(i64);  // Price in cents
10
11#[derive(Debug, Clone, Copy)]
12struct Quantity(i64);
13
14impl AccountId {
15    fn new(id: u64) -> Result<Self, String> {
16        if id == 0 {
17            Err("Account ID cannot be zero".to_string())
18        } else {
19            Ok(AccountId(id))
20        }
21    }
22}
23
24impl Price {
25    fn new(dollars: i64, cents: i64) -> Self {
26        Price(dollars * 100 + cents)
27    }
28    
29    fn as_float(&self) -> f64 {
30        self.0 as f64 / 100.0
31    }
32}
33
34// Type-safe function signature
35fn execute_order(
36    account: AccountId,
37    order: OrderId,
38    price: Price,
39    quantity: Quantity,
40) -> Result<(), String> {
41    // Can't accidentally swap parameters!
42    println!("Executing order {:?} for account {:?}", order, account);
43    Ok(())
44}
45

Ownership Prevents Use-After-Free#

rust
1struct Position {
2    symbol: String,
3    quantity: i64,
4    average_price: f64,
5}
6
7impl Position {
8    // Consuming self - can't use position after closing
9    fn close(self) -> f64 {
10        let pnl = self.quantity as f64 * self.average_price;
11        println!("Position closed");
12        pnl
13    }
14}
15
16fn demonstrate_ownership() {
17    let position = Position {
18        symbol: "AAPL".to_string(),
19        quantity: 100,
20        average_price: 150.0,
21    };
22    
23    let pnl = position.close();
24    
25    // This won't compile - position was moved!
26    // println!("{}", position.symbol);  // ✗ Compile error
27}
28

Result Type for Error Handling#

rust
1use std::fmt;
2
3#[derive(Debug)]
4enum TradingError {
5    InsufficientFunds { required: i64, available: i64 },
6    InvalidQuantity(i64),
7    MarketClosed,
8    InvalidSymbol(String),
9}
10
11impl fmt::Display for TradingError {
12    fn fmt(&self, f: &mut fmt::Formatter) -> fmt::Result {
13        match self {
14            TradingError::InsufficientFunds { required, available } => {
15                write!(f, "Insufficient funds: need {}, have {}", required, available)
16            }
17            TradingError::InvalidQuantity(q) => {
18                write!(f, "Invalid quantity: {}", q)
19            }
20            TradingError::MarketClosed => write!(f, "Market is closed"),
21            TradingError::InvalidSymbol(s) => write!(f, "Invalid symbol: {}", s),
22        }
23    }
24}
25
26fn place_order(
27    account_id: AccountId,
28    symbol: &str,
29    quantity: Quantity,
30    price: Price,
31) -> Result<OrderId, TradingError> {
32    if quantity.0 <= 0 {
33        return Err(TradingError::InvalidQuantity(quantity.0));
34    }
35    
36    // Business logic...
37    Ok(OrderId(12345))
38}
39
40// Compiler forces error handling
41fn execute_trade() {
42    match place_order(
43        AccountId::new(1).unwrap(),
44        "AAPL",
45        Quantity(100),
46        Price::new(150, 0),
47    ) {
48        Ok(order_id) => println!("Order placed: {:?}", order_id),
49        Err(e) => eprintln!("Trade failed: {}", e),
50    }
51}
52

OCaml: Algebraic Data Types for Correctness#

OCaml's type system excels at modeling complex domains:

ocaml
1(* Phantom types for currency *)
2type usd
3type eur
4type gbp
5
6type 'currency money = {
7  cents : int64;
8}
9
10let usd cents = { cents }
11let eur cents = { cents }
12
13(* Only allow same-currency operations *)
14let add_money : 'c money -> 'c money -> 'c money =
15  fun m1 m2 -> { cents = Int64.add m1.cents m2.cents }
16
17(* This type-checks *)
18let total_usd = add_money (usd 100L) (usd 200L)
19
20(* This doesn't compile! *)
21(* let invalid = add_money (usd 100L) (eur 200L) *)
22
23(* Variant types for order status *)
24type order_status =
25  | Pending of { submitted_at : float }
26  | Accepted of { order_id : string; accepted_at : float }
27  | Filled of { order_id : string; fill_price : int64; filled_at : float }
28  | Rejected of { reason : string; rejected_at : float }
29  | Cancelled of { order_id : string; cancelled_at : float }
30
31type order = {
32  account_id : string;
33  symbol : string;
34  quantity : int64;
35  status : order_status;
36}
37
38(* Exhaustive pattern matching - compiler ensures all cases handled *)
39let get_order_id order =
40  match order.status with
41  | Pending _ | Rejected _ -> None
42  | Accepted { order_id; _ } 
43  | Filled { order_id; _ } 
44  | Cancelled { order_id; _ } -> Some order_id
45
46(* GADTs for even more type safety *)
47type _ state =
48  | Pending : pending state
49  | Accepted : accepted state
50  | Filled : filled state
51
52and pending = { submitted_at : float }
53and accepted = { order_id : string; accepted_at : float }
54and filled = { order_id : string; fill_price : int64; filled_at : float }
55
56type 'a order_state = {
57  account_id : string;
58  symbol : string;
59  quantity : int64;
60  state : 'a;
61}
62
63(* Only accepted or filled orders have order_id *)
64let get_id : type a. a state -> a -> string option =
65  fun state data ->
66    match state with
67    | Pending -> None
68    | Accepted -> Some data.order_id
69    | Filled -> Some data.order_id
70

Modules and Functors for Abstraction#

ocaml
1(* Abstract signature for monetary types *)
2module type MONEY = sig
3  type t
4  val zero : t
5  val of_cents : int64 -> t
6  val to_cents : t -> int64
7  val add : t -> t -> t
8  val sub : t -> t -> t
9  val mul : t -> int64 -> t
10  val compare : t -> t -> int
11end
12
13(* Implementation ensures invariants *)
14module Money : MONEY = struct
15  type t = int64  (* Always stored as cents *)
16  
17  let zero = 0L
18  
19  let of_cents cents =
20    if cents < 0L then
21      invalid_arg "Money cannot be negative"
22    else cents
23  
24  let to_cents t = t
25  
26  let add = Int64.add
27  let sub a b =
28    let result = Int64.sub a b in
29    if result < 0L then
30      invalid_arg "Result cannot be negative"
31    else result
32  
33  let mul t factor = Int64.mul t factor
34  
35  let compare = Int64.compare
36end
37
38(* Functor for currency-specific operations *)
39module type CURRENCY = sig
40  val code : string
41  val symbol : string
42end
43
44module MakeMoneyOps (C : CURRENCY) = struct
45  include Money
46  
47  let currency_code = C.code
48  
49  let to_string t =
50    let cents = to_cents t in
51    let dollars = Int64.div cents 100L in
52    let remainder = Int64.rem cents 100L in
53    Printf.sprintf "%s%Ld.%02Ld" C.symbol dollars remainder
54end
55
56module USD_Currency = struct
57  let code = "USD"
58  let symbol = "$"
59end
60
61module USD = MakeMoneyOps(USD_Currency)
62
63let price = USD.of_cents 15050L
64let () = print_endline (USD.to_string price)  (* Prints: $150.50 *)
65

Python: Optional Static Typing with MyPy#

Python 3.5+ supports gradual typing:

python
1from typing import NewType, Protocol, Literal, TypeVar, Generic
2from decimal import Decimal
3from datetime import datetime
4from dataclasses import dataclass
5
6# NewType for distinct types
7AccountId = NewType('AccountId', str)
8OrderId = NewType('OrderId', str)
9Symbol = NewType('Symbol', str)
10
11def validate_account_id(value: str) -> AccountId:
12    if not value.startswith('ACC'):
13        raise ValueError(f"Invalid account ID: {value}")
14    return AccountId(value)
15
16# Generic types for currency
17T = TypeVar('T', bound='Currency')
18
19class Currency(Protocol):
20    code: str
21    symbol: str
22
23@dataclass
24class USD:
25    code: str = 'USD'
26    symbol: str = '$'
27
28@dataclass
29class EUR:
30    code: str = 'EUR'
31    symbol: str = '€'
32
33@dataclass
34class Money(Generic[T]):
35    """Type-safe money representation"""
36    cents: int
37    currency: T
38    
39    def __init__(self, amount: Decimal, currency: T):
40        if amount < 0:
41            raise ValueError("Amount cannot be negative")
42        self.cents = int(amount * 100)
43        self.currency = currency
44    
45    def __add__(self: 'Money[T]', other: 'Money[T]') -> 'Money[T]':
46        if self.currency.code != other.currency.code:
47            raise ValueError("Currency mismatch")
48        return Money(
49            Decimal(self.cents + other.cents) / 100,
50            self.currency
51        )
52    
53    @property
54    def amount(self) -> Decimal:
55        return Decimal(self.cents) / 100
56
57# Literal types for constrained values
58OrderType = Literal['market', 'limit']
59Side = Literal['buy', 'sell']
60
61@dataclass
62class MarketOrder:
63    order_type: Literal['market'] = 'market'
64    account_id: AccountId
65    symbol: Symbol
66    quantity: int
67    side: Side
68
69@dataclass
70class LimitOrder:
71    order_type: Literal['limit'] = 'limit'
72    account_id: AccountId
73    symbol: Symbol
74    quantity: int
75    side: Side
76    limit_price: Money[USD]
77
78Order = MarketOrder | LimitOrder  # Union type
79
80def process_order(order: Order) -> OrderId:
81    """Type-safe order processing"""
82    match order:
83        case MarketOrder(account_id=acc, symbol=sym, quantity=qty):
84            print(f"Processing market order: {qty} {sym}")
85        case LimitOrder(account_id=acc, limit_price=price):
86            print(f"Processing limit order at {price.amount}")
87    
88    return OrderId("ORD123456")
89
90# Runtime type checking with Pydantic
91from pydantic import BaseModel, Field, validator
92
93class OrderRequest(BaseModel):
94    account_id: str = Field(..., regex=r'^ACC\d{10}$')
95    symbol: str = Field(..., regex=r'^[A-Z]{1,5}$')
96    quantity: int = Field(..., gt=0)
97    side: Literal['buy', 'sell']
98    order_type: Literal['market', 'limit']
99    limit_price: Decimal | None = None
100    
101    @validator('limit_price')
102    def check_limit_price(cls, v, values):
103        if values.get('order_type') == 'limit' and v is None:
104            raise ValueError('Limit orders must have a limit price')
105        return v
106    
107    class Config:
108        frozen = True  # Immutable
109
110# Usage with full type safety
111try:
112    order = OrderRequest(
113        account_id="ACC0000000001",
114        symbol="AAPL",
115        quantity=100,
116        side="buy",
117        order_type="limit",
118        limit_price=Decimal("150.50")
119    )
120except ValueError as e:
121    print(f"Validation error: {e}")
122

TypeScript: Covered in Previous Article#

See our article "TypeScript Type Safety in Financial Applications: Beyond the Basics" for comprehensive TypeScript patterns.

Comparative Analysis#

Type Safety Spectrum#

FeatureC++RustOCamlPythonTypeScript
Static Typing✓✓✓OptionalOptional
Type Inference✓✓✓✓✓✓✓✓
Null Safety-✓✓✓✓-✓
Immutability✓✓✓✓✓-✓
Pattern Matching✓✓✓✓✓✓✓
Memory Safety-✓✓✓✓✓
Compile-time Guarantees✓✓✓✓✓✓-✓

When to Use Each Language#

C++:

  • Ultra-low latency requirements (< 1μs)
  • Direct hardware access needed
  • Legacy integration required
  • Maximum performance critical

Rust:

  • Memory safety without GC
  • Concurrent systems
  • New greenfield projects
  • Teams prioritizing correctness

OCaml:

  • Complex domain modeling
  • Mathematical correctness
  • Functional programming paradigm
  • Type-driven development

Python:

  • Rapid prototyping
  • Data analysis/ML
  • Gradual migration to types
  • Existing Python ecosystem

TypeScript:

  • Full-stack web applications
  • Node.js backends
  • JSON-heavy APIs
  • Teams already using JavaScript

Production Impact#

Across our fintech projects, static typing has delivered:

Bug Prevention#

  • 75% reduction in production bugs related to type errors
  • Zero null pointer exceptions in Rust services (18 months)
  • Zero currency mix-ups since implementing phantom types
  • 90% reduction in parameter order bugs

Development Velocity#

  • 40% faster onboarding for new developers
  • 60% less time debugging type-related issues
  • Safer refactoring - compiler guides changes
  • Better IDE support - autocomplete and inline errors

Code Quality#

  • Types as documentation - self-documenting code
  • Fewer unit tests needed - compiler proves invariants
  • More confident deploys - fewer runtime surprises
  • Better APIs - impossible states become unrepresentable

Best Practices Across Languages#

  1. Use Strong Types: Don't rely on primitives (string, int, etc.)
  2. Make Illegal States Unrepresentable: Use type system to prevent bugs
  3. Leverage Type Inference: Write less code, get same guarantees
  4. Exhaustive Matching: Compiler ensures all cases handled
  5. Immutability by Default: Prevent accidental mutations
  6. Runtime Validation at Boundaries: Validate external input
  7. Document with Types: Types are the best documentation

Conclusion#

Static typing is not just a nice-to-have—it's essential for building reliable financial systems. The type system should be your first line of defense against bugs.

Choose the language whose type system best matches your domain:

  • C++ for ultimate performance with modern safety features
  • Rust for safety without compromising speed
  • OCaml for mathematical correctness and elegant abstractions
  • Python for gradual typing in existing codebases
  • TypeScript for type-safe full-stack development

The upfront investment in proper typing pays enormous dividends in reduced bugs, faster development, and increased confidence in your system's correctness.

Further Reading#

  • C++ Core Guidelines
  • The Rust Book
  • OCaml Programming: Correct + Efficient + Beautiful
  • Python Type Checking Guide
  • TypeScript Deep Dive
NET

NordVarg Engineering Team

Technical Writer

NordVarg Engineering Team is a software engineer at NordVarg specializing in high-performance financial systems and type-safe programming.

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