Application programming interface (API),
Definition of Application programming interface (API):
Collection of software routines, protocols, and tools which provide a programmer with all the building blocks for developing an application program for a specific platform (environment). An API also provides an interface that allows a program to communicate with other programs, running in the same environment.
An application programming interface, or API, is a set of programming code that queries data, parses responses, and sends instructions between one software platform and another. In the context of trading, a trader will often use an API to establish a connection between a set of automated trading algorithms and the trader's preferred trading broker platform for the purpose of obtaining real-time pricing data and place trades.
Application programming interfaces, or APIs, have become increasingly popular with the rise of automated trading systems. In the past, retail traders were forced to screen for opportunities in one application and separately place trades with their broker. Many retail brokers now provide APIs that enable traders to directly connect their screening software with the brokerage account to share real-time prices and place orders. Traders can even develop their own applications, using programming languages like Python, and execute trades using a broker's API.
How to use Application programming interface (API) in a sentence?
- More brokers are making their platforms available through an API.
- An API is a way to establish a connection between coded algorithms and a broker's platform.
- An API is essential to implementing an automated trading strategy.
Meaning of Application programming interface (API) & Application programming interface (API) Definition