Beating the market, getting the best prices and maximizing returns is as much about strategy as it is about speed and connectivity. These days, many advanced traders make use of so-called API systems precisely for this reason.
Essentially, an API, which stands for ‘Application Programming Interface’, is a program that enables one piece of software to communicate with another. More precisely, it makes it possible for traders who run algorithmic models on their trading systems to receive real-time prices from one or multiple markets and execute orders accordingly.
Some of the tasks you can do using an API include downloading historical market data, stream market data in real-time, place, change or cancel a wide range of order types, view account balances, and much more.
APIs are especially useful if you want to engage in arbitrage, as some APIs allow you to track and engage multiple markets simultaneously.
Tip: Arbitrage is the practice of taking advantage of price differences across different markets and currencies. Considering the crypto industry is still young with more than 300 exchanges, there are many opportunities for the savvy arbitrageur.
These days, many crypto exchanges allow for API integration, and so does AAX. However, as an institutional-grade platform, powered by LSEG Technology’s Millennium Exchange, we have taken efficiency and speed to another level.
Direct Market Access with AAX
What sets AAX apart from first-generation crypto exchanges is that we are able to offer institutional clients and advanced retail traders direct market access through the FIX Gateway.
Tip: FIX stands for Financial Information Exchange. It is a vendor-agnostic electronic communications protocol and has become the de-facto messaging standard for pre-trade, trade and post-trade communication, as well as for regulatory reporting.
The FIX Gateway uses the FIX Protocol and combines the advantages of a hub with the benefits of a direct connection.
Compared to connecting to the exchange via API, connecting through the FIX Gateway offers unprecedented speed to crypto-traders.
Order execution is extremely fast, so traders are better able to take advantage of very short-lived trading opportunities. Furthermore, the service’s inherent transparency significantly reduces the risk of message failures and the subsequent losses that could otherwise occur.
Offering direct market access to our clients via the FIX Gateway is one of the many ways in which AAX has raised the bar for performance in the crypto industry.
Have you tried our platform yet? Sign up today to experience what it’s like to trade cryptocurrency and derivatives on a next-generation crypto exchange.