API trading uses an application programming interface to connect software with a trading venue. A program can retrieve market data, inspect permitted account information and send order instructions through documented requests. An API is a communication interface, not a trading strategy.
Public data and private actions
Public endpoints may provide prices or order books without account access. Private actions, such as placing or cancelling an order, generally require authenticated requests and suitable permissions. Platforms can separate viewing, trading and transfer permissions.
A trading integration should receive only the access its tasks require. Disabling withdrawals reduces one route for asset theft, but a compromised trading credential can still cause damaging trades. API credentials are also distinct from a blockchain wallet’s private key.
Requests need confirmation
Programs must handle order-size rules, rate limits, rejected requests and interrupted connections. A timeout does not establish whether an order was accepted, so checking order status before retrying helps avoid duplicates.
Market-data feeds and confirmed executions should be reconciled with the account’s actual orders and positions. Features, authentication methods and limits differ across products and can change. Using an API neither guarantees faster fills nor removes fees, slippage or market risk.