How New Technology Can Improve Your Strategy

FIX API Trading – How New Technology Can Improve Your Strategy

As online Forex trading has become so popular, some of the top brokers are able to provide excellent trading platforms to their clients. The FIX API trading platform is among them, and BlackBull Markets, one of the best brokers available at the present, provides this popular automated trading platform to its clients. From the very beginning, this automatic trading program has gained tremendous popularity.

What is FIX API?

The Financial Information Exchange (FIX) Application Programming Interface (API) is a collection of strictly defined rules and techniques that are developed exclusively for the electronic transfer of financial information. When it comes to the terminology of the industry, it is referred to as “electronic communications protocol for real-time information exchange for financial securities transactions.”

The FIX API allows for a smooth transfer of real-time data between market participants through a standardized interface. In order to address the market on a continuous basis, liquidity providers, traders (both retail and institutional), and regulators employ the FIX protocol. One of the most important functions of the FIX API is to make it easier to transmit three different sorts of data:

  • Pre-trade – Pre-trade data is applied in the development of strategy and the formulation of choices for execution on the market. This sort of data contains liquidity position, transaction flow, and insight indicators that are streamed instantly from exchange or market servers, as well as data from other sources.
  • Trade – Trade-related data is associated with the action of executing a trade. The order entry, confirmation, and execution operations all rely on the delivery of data over the FIX protocol.
  • Post-trade – data collected after a market-based transaction is used to help in the recording, processing, and transfer of asset ownership that occurs after the transaction has been completed.
Financial Information Exchange

FIX API – Background And History

Robert Lamoureux and Chris Morstatt first proposed the FIX Protocol in 1992, and it has been in use ever since. One of the early goals was to make it possible for investors to send data relating to the stock market through the internet. When it first became operational, it made it easier for brokerage companies Fidelity Investments and Salomon Brothers to communicate with their corporate investors.

FIX was created with the goal of increasing the efficiency of trade-related communications from the beginning. Back then, the great bulk of communication between traders and brokers took place over the phone. These conversations became digital after the advent of the FIX protocol. As a result of the transformation, much of the uncertainty was taken out of communication, as what was once spoken interactions turned digital.

Reasons For Considering FIX API Trading

  • Concerns about current financial platforms and interfaces since it is hard to control all system features at the same time.
  • Existing interfaces have their limitations. When it comes to ordering fulfillment on well-known platforms, for example, many require two or more ticks, which is extremely slow for high-frequency approaches.
  • There is a requirement for security and anonymity in the automated systems used by a customer.
  • There is a demand to establish a bridge with the liquidity provider.

The requirements for creating a FIX API connection

  • Instructions on how to connect to a test (UAT) environment, which should be used for testing before connecting to a network protocol.
  • The FIX API guidelines manual, which serves as a kind of protocol guidebook, is available online.
  • A professional programmer with standard protocol abilities, such as HTTP, telnet, TCP, or Java, will set up a connection with little effort.

FIX API Trading Advantages

  • Increased execution speed.
  • The capacity to create a customized user interface.
  • There is the option to employ other order types, such as market or limit.

FIX API Trading Disadvantages

  • You will be given a new task for ensuring that the system’s performance and efficient functioning are maintained.
  • If you originally used Meta Trader 4, you will need to re-program any automated systems that were previously programmed in MLQ4.
  • Additional costs will be caused as a result of the programmer’s work and the cross-connection.
In the years since its creation in 1992, the FIX Protocol has made significant contributions to the speed and efficiency of the digital marketplace. The FIX API may be a beneficial tool for those who are interested in lowering trade-related latency in a variety of ways, from streaming price data in real-time to improving order execution.

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