Application Programming Interface - API

AAA

DEFINITION of 'Application Programming Interface - API'

An interface or "go-between" that enables a software program to interact with other software. In the context of forex trading, an API refers to the interface or platform that enables your platform to connect with the market. APIs have multiple features that facilitate information sharing, including real-time forex price quotations, trade execution and order and trade confirmations.

INVESTOPEDIA EXPLAINS 'Application Programming Interface - API'

Proprietary APIs are offered by almost every major online forex brokerage. Because the fast-paced nature of forex trading makes automated trading preferable to manual trading for most traders, a reliable API is an important differentiator for a forex brokerage to ensure stable operation and execution of trades.

RELATED TERMS
  1. Forex Trading Robot

    A computer program based on a set of forex trading signals that ...
  2. Real Time Forex Trading

    A form of speculation in which a trader bets on the movement ...
  3. Forex Trading Strategy

    A set of analyses that a forex day trader uses to determine whether ...
  4. Currency Trading Platform

    A type of trading software used to help currency traders with ...
  5. Automated Forex Trading

    A method of trading foreign currencies with a computer program ...
  6. Paper Trade

    Using simulated trading to practice buying and selling securities ...
RELATED FAQS
  1. What should I look for when choosing a forex trading platform?

    A trading platform is a piece of software that acts as a conduit for information between a trader and a broker. A trading ... Read Full Answer >>
  2. What types of accounts are available for forex trading?

    There are many different types of forex accounts available to the retail forex trader. Demo accounts are offered by forex ... Read Full Answer >>
  3. What happens if a software glitch fails to execute the strike price I set?

    If you've ever suffered the frustrating experience of having an order not filled or had a strike price fail to execute because ... Read Full Answer >>
  4. Will technology ever disrupt the role of the custodian bank?

    Custodian banks, along with other financial institutions that hold custodian accounts, are likely to be disrupted but not ... Read Full Answer >>
  5. How do I close a long position in forex?

    Closing a long position in forex trading depends on whether you are using a broker operating under U.S. trading regulations. In ... Read Full Answer >>
  6. What is the difference between business intelligence and competitive intelligence?

    Competitive intelligence is the act of understanding a company's industry and industry rivals so the company can make better ... Read Full Answer >>
Related Articles
  1. Forex Education

    Forex Automation Software For Hands-Free Trading

    Automated forex trading software scans the market for favorable trades based on your input. Find out more about this valuable forex tool.
  2. Forex Education

    How To Become A Successful Forex Trader

    Discover a framework that will help you build your own profitable forex trading strategy.
  3. Trading Systems & Software

    The Fast-Paced World of Libor & Fixed Income Arbitrage

    LIBOR is an essential part of implementing the swap spread arbitrage strategy for fixed income arbitrage. Here is a step-by-step explanation of how it works.
  4. Trading Systems & Software

    How New Traders Can Downplay Costs

    Concentrate on learning to play the game well in your first year as a trader, avoiding high information costs.
  5. Trading Systems & Software

    6 Brokers That Will Pay You To Trade With Them

    We review six leading online brokers that are offering cash bonuses for opening a new account.
  6. Trading Systems & Software

    Average Rate Of Return For Day Traders

    A look into the question of day trader earnings and factors that play a role in trading success.
  7. Trading Systems & Software

    How To Trade In The Hong Kong Stock Exchange

    The Hong Kong Stock Exchange may soon become the third-largest exchange in the world.
  8. Trading Systems & Software

    Want To Trade Stocks In College? 5 Tips To Start

    Investing while in college can be challenging. Here are 5 tips to help student investors make the most of their college years.
  9. Investing

    TradeKing Vs. TradeStation: Which Meets Your Needs?

    Each of these two online brokerage firms offers a package of benefits, features and services that meets a distinct type of investor's needs.
  10. Professionals

    Top Strategies on How to Become a Stock Broker

    Gunning to be a stock broker and want an edge? Here's some veteran advice.

You May Also Like

Hot Definitions
  1. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  2. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  3. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  4. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  5. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
  6. Touchline

    The highest price that a buyer of a particular security is willing to pay and the lowest price at which a seller is willing ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!