API trading refers to the use of Application Programming Interfaces (APIs) to facilitate automated trading in financial markets. Traders and developers can connect their trading algorithms to a broker’s platform via an API, which allows for the execution of trades, retrieval of market data, and management of trading accounts without manual intervention. APIs enable high-frequency trading, algorithmic strategies, and customized trading solutions. Generally, they provide a standardized way to access trading functionalities, enhancing efficiency and speed in executing trades. In many markets, API trading is popular among institutional traders and experienced retail traders who seek to leverage technology for improved trading outcomes.
