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.

APIs are useful because they make software developers more productive. Without them, all developers would have to write and then maintain their own code to access remote resources. Having a standard way to read from and write to those resources makes the platform that provides the API more accessible and more attractive to developers, therefore increasing the likelihood that third parties will use and exchange data with their platform.

In simple APIs are also known as connectors that help establish a synchronized connection between two applications for the exchange of information on a real-time basis. APIs are also a key tool for application integration. Application integration is a means of enabling applications and systems from different vendors to involve each other in their workflows, so that, for example, you can enter data in one application and have it automatically available in other platforms.

An API integration serves as the connection between two applications, letting them exchange data. APIs allow developers to sync data between multiple platforms and can facilitate communication among the various microservices in web applications. API integration is what does the work when, for example, you enter a new contact in Salesforce and it auto-populates to Marketo as well.

A key advantage of API integration is that it automates data sharing in a secure process, therefore helping maintain data integrity between platforms.

API management

To create APIs, businesses turn to API management software. API management tools foster the creation and publication of APIs, enforce usage policies, control access, collect and analyze usage statistics, and report on performance. Both commercial and open source API management tools are available. You can read more about them.

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:

• Third-Party Applications – Many traders use third-party applications that require access to broker APIs for pricing data and placing trades. For example, MetaTrader is one of the most popular foreign exchange (forex) trading applications and requires API access to secure real-time pricing and place trades.
• Developer Applications – A growing number of traders develop their own automated trading systems, using programming languages like Python, and require a way to access pricing data and place trades.