API trading

An application programming interface (API) connects two applications together, such as a trader’s customized trading software and Kraken’s market data stream. Kraken’s API products let traders connect and control their Kraken accounts using their own or third-party software. This allows traders to use custom code for market analysis and automated trading strategies via Kraken.

Traders can use Kraken API products to build and execute a variety of strategies at high speed while reacting to changing market conditions. API trading strategies can also be automated to run without the trader’s intervention. All you need to trade using API is a Kraken account, your own or third-party software, and an API key to connect both applications. In this way, API trading is more similar to creating the parameters by which a trading program should execute orders, rather than manually placing trades individually. 

High-frequency traders and arbitrageurs typically benefit the most from API trading thanks to the speed at which software can seize market opportunities. Institutional and individual traders alike can use API trading to execute a large number of orders in fractions of a second. API data streams also allow traders to run their own market analysis software that can inform their trading strategies.

Algorithmic trading is a trading strategy performed by computers reacting to an array of market data. Sometimes called “bot trading,” algorithmic trading involves the automated interpretation of market data into a computer-executed trading strategy. While trading may be automated, traders often observe their algorithmic systems to hone the software and overall strategy.

Yes, clients are welcome to use trading bots to trade our markets. You can learn more about connecting a trading bot to your Kraken account on our Support Center: Does Kraken allow trading bots?

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