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Showing posts from June, 2023

What Is an API and How Do You Use It To Trade?

  An application programming interface (API) is a software bridge that allows computers to communicate and execute tasks with each other. You can think of it as a language translator for computers. Summary An application programming interface (API) is a software bridge that allows computers to communicate and execute tasks with each other. APIs act as computer-to-computer code translators to carry out increasingly complex tasks at hyperkinetic speeds impossible for humans to replicate. Indeed, without API trading, crypto exchanges would be unable to offer customers the depth and breadth of services they provide. Without APIs, algorithmic and AI trading strategies would not be possible. Contents What Can an API Do? Top APIs for Crypto Traders Who Can Benefit From API Trading? Algorithmic Trading: Welcome to Robo-Trades Basic Algo Trading Strategies Trend following Arbitrage opportunities Index fund rebalancing Will Artificial Intelligence (AI) Replace Traders? An  application programmin

Pros and Cons of Automated Trading Systems

  Are you ready to trust your trading strategy to bots? Read about the advantages and disadvantages of algorithmic (algo) trading. Summary Automated, or algorithmic (algo), systems across all asset classes execute pre-set orders that can exclude the influence of human emotion or market swings. This is one advantage of algo trading, as emotional trading can result in overtrading, which in turn can trigger losses. Another benefit of algo trading is that a computer-managed system lets you trade multiple accounts and strategies simultaneously. Algo trading can help to reduce the incidence of mistakes made by humans when placing trades and can identify profit and loss (P&L) opportunities much faster than a human trader. Algorithmic trading is not for novice traders. It relies on expensive, complex software and takes place primarily at large investment banks, hedge funds, proprietary trading firms, and regulated cryptocurrency exchanges. Contents Advantages of Automated Trading Systems D

Understanding Order Management Systems

  Order management systems built specifically for trading digital assets connect to crypto exchanges to offer services tailored to the global crypto market Summary In financial markets, an order management system (OMS) automates and integrates tasks to process the lifecycle of a trade order into a single system. These systems were originally developed to solve for delays and a lack of cohesion in traditional trading firms. Over time, OMS software has integrated increasingly sophisticated features and functions — potentially to support cryptocurrency trading. Contents Understanding Order Management Systems Order Management Systems: Background Recent Developments An Order Management System for Cryptocurrencies Evaluating Cryptocurrency Order Management Services Understanding Order Management Systems In financial markets, an order management system (OMS) automates and integrates tasks to process the lifecycle of a trade order into a single system. These tasks include routing the order to