Data Flow Diagram Example: Securities Trading Platform


This is a Data Flow Diagram (DFD) example for a securities trading platform. It is a level 1 DFD that presents five major processes of the platform, three external entities and three data stores. Such a Data Flow Diagram provides a visual representation of the information flow within a system. You can easily find out the information supplied by and delivered to a particular party.

Use this DFD template to get started building your own. Customize the DFD to reflect the data flow within your problem. Click Use this Template to start.

What is Data Flow Diagram?

Data flow diagrams are also known as bubble charts. It is often used as a preliminary step to create an overview of the system without going into great detail, which can later be elaborated as top-down decomposition manner. A DFD shows what kind of information will be input to and output from the system, how the data will be flowed through the system, and where the data will be stored. Unlike a traditional structured flowchart, it does not show information about process timing or whether processes will operate in sequence or in parallel.

How to Draw Data Flow Diagram?

  1. Requirement Analysis - The first step is to determine the functional requirements or feature items, which could be located in documents, or notes after meetings (or interview of end users)
  2. Determining System Boundaries (develop context diagram)
  3. Developing the Level 0 DFD
  4. Child (Level 1+) DFD Diagrams
  5. Review the consistency in terms of level 1 and the parent / child DFDs

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