what is an application programming interface api 
an application programming interface api is a set of programming codes that queries data parse responses and sends instructions between one software platform and another apis are used extensively in providing data services across a range of fields and contexts apis have become increasingly popular tools with the likes of meta formerly facebook amazon salesforce and many more establishing their own apis that allow companies to access some of their services without having to fully migrate into their ecosystem this new paradigm has led to the rise of what some experts call the api economy a model that enhances a company s bottom line by improving interoperability and thus creating new systems from existing ones in the domain of financial markets and trading one may use an api to establish a connection between a set of automated trading algorithms and the trader s preferred trading broker platform for the purpose of obtaining real time quotes and pricing data or to place electronic trades understanding application programming interfaces apis apis have become increasingly popular with the rise of automated trading systems in the past retail traders were forced to screen for opportunities in one application and separately place trades with their broker many retail brokers now provide apis that enable traders to directly connect their screening software with the brokerage account to share real time prices and place orders traders can even develop their own applications using programming languages like python and execute trades using a broker s api two types of traders use broker apis despite the apparent benefits of apis there are many risks to consider most apis are provided to a broker s customers free of charge but there are some cases where traders may incur an extra fee it s important to understand these fees before using the api traders should also be aware of any api limitations including the potential for downtime which could significantly affect trading results 