Glossary term

API

A software interface that lets systems talk to each other.

An API allows code to request data or send instructions to another service. In trading, broker APIs can retrieve account positions, place orders, cancel orders, and stream market data, but they require strict safety checks.

Example: A trading script can use a broker API to compare target weights with current holdings and create orders.

Where this appears

How to automate trading with Interactive Brokers How to turn target positions into broker trades