Understanding the Use of Forex Data API

Foreign exchange has been a global marketplace with tremendous volume. Market participants require a reliable source of forex data to analyze previous price movements, determine patterns in price changes, and apply them to the current trading environment to profit through their trading journey.

Forex Data API helps traders in market analysis

Image by Austin Distel from Unsplash

Similarly, algorithmic trading, trading robots or automated trading systems have empowered forex market participants. Fintech startups and established organizations need to rely on accurate and reliable forex data to stay updated regarding the currency prices that affect their businesses.

This article takes you through the importance and benefits of forex data API.

What is Forex Data?

Foreign exchange is a global, decentralized, or over-the-counter (OTC) market for the trading of currencies of different countries. Many factors influence currency prices, making them fluctuate in less than a second. Forex data is the record of currency prices for numerous currency pairs.

Forex data in charts, graphs, and values helps traders analyze the market. We will discuss the use of forex data for various purposes in the upcoming segments.

What is the Forex Data API?

Technically, Application Programming Interface (API) is a software intermediary for communication between two applications. Forex Data API is a similar web service interface to retrieve foreign exchange market data for websites and applications.

Forex Data API works behind the scenes to provide richer digital experiences while performing market analysis and placing trades.

Why do Businesses Need Forex Data API?

Companies importing raw materials or selling their products and services to different countries need updates on currency prices. These businesses can try to avoid unnecessary spending while dealing overseas.

It may be almost impossible to source the required information manually. Instead, a reliable and accurate Forex Data API can help businesses stay updated about the world market and make profitable business decisions. It becomes easy to calculate the value of a product in the desired currency, with access to real-time currency prices.

Along with these, a few other business categories regularly require market data for significant business operations.

Fintech Organizations

Fintech companies need a forex data API to bring many financial services to life. API integrates with several analytical and trading applications. It adds transparency and enables users to access real-time and historical data.

Blockchain Companies

Blockchain companies play a crucial role in cryptocurrency by maintaining a secure and decentralized ledger of transactions within a network. Blockchain development companies build cryptocurrency exchange applications, crypto wallets, crypto portfolio tracking apps, and many other solutions. They require Forex and Crypto data API to add data retrieval features to these applications.

Forex Brokerage Firms

Forex brokerage firms help traders of varied classes place their trades by earning a small margin or commission. Brokerage firms provide their clients with dedicated analytical and trading applications. They require accurate and reliable forex data API to help their clients retrieve live and historical currency prices.

Curated and accurate forex data is therefore critical for businesses directly dealing in forex trading and helping others trade.

How is Forex Data API Used?

As discussed above, businesses can use forex data API to get real-time currency prices to deal overseas profitably. Similarly, institutional and retail investors can make informed trading decisions. Let’s deep-dive into the use of forex data API for trading and development purposes:

Forex Trading

Financial institutions, funds, retail forex investors and other traders can leverage charting, research, and forex data products for market analysis. Traders can draw strategies by studying the price movement patterns and try to apply them to real-time trading. Traders can make informed trading decisions through access to historical and streaming forex data.

Developing Forex Trading Solutions

Forex trading applications, algorithmic trading tools, trading robots, and many other solutions are gaining popularity. If your organization plans to build such solutions, you need a reliable forex data API. Developers can integrate forex data API into their solutions to retrieve accurate and reliable data. Fintech companies can use forex data API to empower their apps and enable users to excel in forex trading endeavours.

Executing Financial Smart Contracts

Financial Smart Contracts are gaining popularity due to their speed of transactions, accuracy, and transparency. Executing these Smart Contracts requires a node or Blockchain Oracle. Blockchain companies feed these Smart Contracts with data from the real world. This process is made possible by Forex Data API. Please read this blog thoroughly to learn more about this mechanism.

How to Get the Best-Quality Forex Data API?

It is essential to choose the best forex data providers with extensive experience and expertise. As the technology evolves, the vendor should upgrade the product range to meet the changing analytics and trading needs. Similarly, the data vendor should be committed to provide prompt customer support through live chat, email, and other modes.

TraderMade provide historical and real-time forex data in various delivery methods for traders and developers.

• Traders can get historical forex data in downloadable CSV, Google Sheets, and Excel formats.
• They provide forex data for developers via REST API, FIX, and WebSockets.

They source forex data from multiple reliable sources and curate it to ensure its accuracy and quality. Developers can integrate forex data into their applications by referring to detailed tutorials for trending programming languages and documentation for various delivery methods.

Originally Published on Medium.