trading

What is Stock Trading API?

by Josh Biggs in Marketing on 26th August 2019

The possibilities are endless in this technologically advanced world, that even money can be made from purely digital transactions and more and more are discovering that one can invest and see returns in stocks and trading it. However, as it is still a well-guarded industry, and the processes and terms are still confusing and difficult to master, that it is still necessary to have someone that is really well-versed in the business to help you out, and be able to make money from it. In the past you had to trust a broker, and let him or her manage your money, most of the time you just let them do all the decisions since you do not have any idea about it. Stock Trading API has changed the arena of stocks and trading, and has made it more accessible for everyone.

What Exactly is Stock Trading API?

It is the lifeblood of digital wealth management and online brokerage firms, it is a dedicated software that is able to conduct stock trading into a more scientific and systematic process. The program’s algorithms run the websites and tools of digital wealth management platforms. Simply, without it, the online trading platforms would not run, it is an intuitive program that can do a myriad of other things all essential to the management of stocks and trading. It is a crucial program that would identify opportunities and weaknesses in order to make strategic decisions that would be advantageous to the trader. Moreover it is the driving force behind online brokerage firms, in the past, brokerage firms relied on the brilliance and cunningness of its brokers as they work the trading floor, nowadays, it is actually possible to do stocks trading online. The brokerage firms still handle client’s investments, but it has automated the broker through the Stock Trading API.

How Does It Help in Stock Trading?

  • Stock Trading API is able to facilitate the trading of stocks and other options as it happens in the live platform. There is very little downtime, and the API enables the trader to observe and make strategic decisions as it is being traded. This would mean that the trader can sell or buy in the same time that the stock market is moving, therefore enabling greater wins and less of the indecisions and regrets.
  • There are high risk stocks and there are the more conservative ones, which is always stable and rarely have drastic highs and lows. It is always a good idea to have multiple investments, from the more exciting ones and the stable ones. Hence, the Stock trading API is able to automate the trading lifecycle, to focus a predetermined amount of investment to a particular stocks on a preset schedule. This would mean that you need not worry about how your other stocks are doing while you focus your energy in the high yield ones.
  • The API can also monitor and manage the trading activity of the client in real time, most of those who succeed in stocks trading know that it takes a lot of observation, monitoring, anticipation and timing to be able to make a profit. You need to have all the necessary information before you can actually make the right move and this can be efficiently handled by the API.
  • Moreover, it can also help you maintain your positions for a predetermined period which you can actually set up. Sometimes stock prices fluctuate due to environmental factors and the best option to do is simply to maintain your position. The API can do this for you so you can work on other stocks and not worry that you might lose money from your other stocks.

The Stock Trading API Is an Efficient Tool

The Stock Trading API manages information and data very efficiently, among other things, it can download the start-of-day (SOD) files from the clearing firms for various stocks and clients. Thus, at every start of trading day, you will be able to view the important numbers like prices, margins and profits. This would mean that you will go into the trading floor already armed with the information you need. It also has automated compliance reports which would mean that you need not concern yourself with the preparation of the reports after each transaction. The API can be programmed to generate the compliance reports on your schedule.

In terms of providing technical platform for online brokerage firms, the API can receive orders and then route them to the appropriate execution venue. This is done through an algorithm that matches the orders in the system with the highest possibility for success among the venues that are being handled by the firm. This takes out the guesswork and will be efficient in terms of providing the service needed by the client. After matching the order to a particular venue, the Stock Trading API can also track the progress of each order throughout its lifecycle to determine if the order was fruitful or not, and to what extent it could be allowed to repeat and will it lose or make money or should it be invested in another venue.

Stocks Trading API Helps You Be Compliant

It is a reality that there stocks trading is an exciting venture, the potential to make huge profit is always there and sometimes it can be an opportunity for unscrupulous persons to take advantage of other people. Hence, the regulations and the checks and balances are too many to manage on your own. The safeguards had been placed to ensure that each transaction is above board and complies with all the necessary regulations and standards. The API can calculate the buying power, margin requirements and account balances of each account handled by the online brokerage firm and then submit the report of each in real time. It will clearly identify the profits and losses of the stocks and prove that there is no insider trading. It can also send drop copies to the appropriate agencies and regulatory offices as well as upload end-of-day trade files to the clearing firms and report any incident to the regulators.

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