What Is a Stock API Trading Service?

Among the stock trading programs offered by securities companies, there is an API trading service.
An API (Application Programming Interface) is an interface that connects the securities company's server with the investor's program so it can place orders, look up quotes, check account information and so on
It is a service that uses this to let customers trade stocks automatically with programs they have written.
Let's learn about API trading.
1. Securities companies that offer API trading
- Kiwoom Securities, Korea Investment & Securities, NH Investment & Securities, Mirae Asset Securities, Samsung Securities, LS Securities, Yuanta Securities, Daishin Securities, Hana Securities
2. What you need for API trading
- To trade via API, you must install the API program provided by the securities company.
- Then you must develop a program applying your desired logic in a development language compatible with the securities company's program (C, Python, Java, etc.)
(Develop your own trading program by referring to API development books or YouTube lecture videos)
3. Advantages of API trading
- Automated trading: The program trades according to set rules, so you are not swayed by emotions
- Speed: Orders are processed instantly when conditions are met, much faster than a person clicking
- Repeat trading: The same strategy can be executed hundreds or thousands of times (advantageous for day trading, scalping, etc.)
- Condition search: Orders can be placed automatically and quickly when specific conditions are met
4. Disadvantages of API trading
- Coding knowledge required: Coding skills are needed for API registration, login authentication, code development, error handling and more, so the barrier to entry is high
- Exceptions may occur: There is a risk of large losses when errors such as delayed execution, server downtime or unfilled orders occur
- Lack of real-time responsiveness: It cannot respond as quickly as a person to unexpected situations such as news or policy announcements
- Securities company restrictions: Each securities company has limits on the number of requests and orders, restrictions on connection hours and so on

5. Precautions
API trading is a powerful tool, but thorough testing and risk management are essential.
Especially for beginners, it is important to practice sufficiently with mock investing before applying it in real trading.