APIs

[opulence]

Surfing around I came across the term API. It is hard to learn what this is as everything you read seems to assume you know what you're reading about.

From what I gather it seems to be the program by which you can enact an automated mechanical system. Although I don't understand how it works.

Could anyone explain APIs for dummies?

 

[akkopower]

http://en.wikipedia.org/wiki/Application_programming_interface

read it several times and then go through the references

 

[IB12]

The API is the software interface with which two programs communicate with one another.

So for example your broker might have a software platform for handling your orders and portfolio, and you want to cull data from that platform using Excel. The API sits in between those two programs and allows them both to communicate to one another and work together.