All You Want To Know About Market Data API

The whole world is in chaos due to the COVID-19 virus. Countries worldwide are opting for a complete shutdown. Stock markets too have their share of problems. The complete stock market is in turmoil.The market data api offers you information on real-time or historical data on the financial market about the assets that are being currently traded. The data that you get from these API’s is used for generating technical indicators so that you can come up with the best strategies and also monitor the stock market trend.

What is stock market data API?

The market data api is very important in building trading strategies and quickly pulls out information for thousands of securities. Historical and real-time data is a very important aspect of any trading or investing strategy. When using a market data API you can process large amounts of data in a short period, and you can take your eyes off from the market to do other things in your life. The stock market data API usually gives you the information about the public stocks. It helps you get access to the financial databases and gives you insight intofinancial summaries, information about stock, quotes, etc.

Different types of API’s

There are lots of market data application programming interfaces available on the internet for download. Some are free and others are subscription-based, or you can buy for one time.

Meaning of API (application programming interface)

An application programming interface or an API consists of a set of programming codes that sends instructions between one software platform to another. If you are using an API in the context of the stock market, it is used to establish a link betweena set of automated trading algorithms and the trading broker the trader is interested in. it helps in enquiring real-time pricing data and place trades.

  • A market data api helps in creating a link between algorithms and brokers platform
  • This is essential in the implementation of an automated trading strategy
  • Lots of brokers are using a market data application program interface to make their platform available.

Though there are lots of benefits in using API there are disadvantages too. Most of these stock market APIs are provided free to a broker’s customer. But sometimes traders need to give money for the API at these times the trader needs to see why he has to pay money for the API because sometimes there are API limitations that can have a significant effect on the results of the stock market trading.

In short

A market data api is becoming very popular because of the rise of automated trading systems. In the past traders had to screen for opportunities in one application and separately place a trade with their brokers. But now day’s brokers provide an API that helps traders to directly establish a link of their screening software and the brokerage account to know about the real-time prices and place orders or trade accordingly.