What Role Does an Exchange’s API Play in Soft Liquidation Strategies?
An exchange's API (Application Programming Interface) is crucial for advanced soft liquidation strategies, both for the exchange and for institutional traders. The exchange's internal risk engine uses the API to automatically execute partial closing orders to reduce position size or leverage.
Institutional traders can also use the API to monitor their margin levels in real-time and execute pre-programmed, rapid deleveraging trades before the exchange's hard liquidation is triggered.
