Application programming interface refers to all trading that uses a software program to interact with other programs. The API acts as the middleman between the trader and the market, relaying orders and retrieving information as needed. Many online forex brokers provide software to their clients to allow API trading.
API trading has become so commonplace that many traders have never experienced phone-based trading. The advantages of API trading are numerous, including the level of customization possible and the ability to run automated trading programs. The API offered to clients may vary from brokerage to brokerage, so it is worth testing through a demo account before signing up.
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