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API trading

Sending orders and consuming data through a broker or exchange programming interface rather than a graphical platform, usually over REST, WebSocket or FIX.

APIs make strategies reproducible and testable, but they move every safeguard from the platform into your code. There is no confirmation dialog, no greyed-out button, and no human pause between an intention and 500 orders.

Minimum discipline: idempotent order submission using a unique client-order-id, explicit handling of rejects and partial fills, reconciliation of positions on reconnect, and a kill-switch that can flatten and disable everything.

Example: a bot retries a timed-out order without an idempotency key. The first request had actually succeeded, so the retry doubles the position; a reconnect loop repeats it four more times. Intended exposure of $10,000 becomes $60,000 before a human notices.

Related: fix-protocol, client-order-id, kill-switch, pre-trade-risk-check

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