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.
BREAKING DOWN '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.