What is the current stance on manually placed API orders? Do we need exchange approval?
If I place too many orders, say somewhere around 1000 (this is a hypothetical worst case scenario), won’t that raise suspicions about whether I’m doing it manually or not? (Even though I am infact not using automation.)
Are API orders not allowed by exchanges?
That’s what I don’t understand. Are API orders being classified as algo orders? Then we would need exchange approval.
The thing is, I don’t think the brokers are going to get into any trouble over this. They’ll just say something like “should have checked the rules before” etc.
As in, it’s probably legal for them to provide API services, but the burden of getting algorithms verified depends on the user.
All of this is conjecture, I can’t find a definite answer anywhere.
What if they are classified as algo trades? I don’t understand what you’re asking about. There aren’t any restrictions on retail algo trades right?
1 Like
Wait wait, so what was that consultation paper by SEBI about?
I think they were saying that all API orders would be treated as algo orders, and algorithmic trading would require certification by SEBI.
I have never seen an official source which states that API orders by retail customers do not require certification by SEBI.
There was a thread about this, search “API Orders” on trading q and a.
to maintain thread continuation, Nithin has answered here