Trading through fix api: what it is
Category : Software
Trading automation reaches new heights every year. Trading algorithms become more and more complex, the robots carry more opportunities and become more flexible, while the new trading strategies allow to reduce possible risks to zero. This progress develops fast enough and the main task of the trader is to keep up with all the trends.
One of the innovations that can be seen in the programs that I have been looking at is the possibility of trading through a special fix api. Having understood what it is, I want to share my experience with you.
Fix api is an access to a financial protocol that brokerage companies can provide to their clients (usually those who use algorithmic trading). Fix api allows you to connect directly to liquidity providers and the market as a whole. Thus, all operations are opened on the server of the prime broker or the liquidity provider, which allows you to bypass the server of broker companies. As we know, there is a temporary delay that results in spread and slippage if we trade on the servers of an ordinary broker. But if you conduct your business through this protocol, these inexperienced moments in fix api trading disappear.
To put it simply, fix api allows you to:
- Receive current quotes, based on which you can make deals at the current prices. This allows you to bypass the mark-ups and other margins of brokerage companies, including spreads.
- Instantly display an order on the market. Since you will no longer use the brokerage company’s server, your orders will be delivered without slips and delays. Trading operations will be processed at the speed with which the market moves. Thatmeansinstantly.
- Ability to use pending orders. Another feature of fix api trading is the fact that the system has special pending orders, which further increase the accuracy of entering in the market. Such orders are executed absolutely without any delays and carry the price of the market.
- Fix api is suitable for paired trading and speculative trades. That is why the first programs that began to use this type of trade were scalping and fix api arbitrage strategies. It is in this kind of trading that the main role is played by the accuracy of pips in pip.
These key features are also the benefits of this type of trade.
I would also like to note that brokerage companies already appear on the market, which allow trading through fix api, and this is not strange. This protocol implies trading on the market, and thus all transactions are re-bought, and the broker in turn earns only on commissions. However, there is also a kind of “restriction”: for access to trading through a financial protocol: brokerage companies request large amounts of the initial deposit, which complicates the entry threshold.
In the market, this approach just starts to emerge, but there are already companies that are serious about improving the fix api trading. For example, the FXMARS Inc. company http://forexzzz.com/key-features-of-fix-api-trading/has already several products, the purpose of which is to trade with fix api. Various auxiliary programs, arbitration robots, as well as connectors are aimed at applying an innovative trading approach.
Given the fast-growing market and the increased interest of traders in this type of trading, I can confidently state that in a few years not only the trading process will be automated, but it will also be using this particular type. For the trading robot itself is ready to increase the tradingindicators, and trading through fix api will further contribute to this.