Insider Trading API is a REST API for investment ideas and risk monitoring for the stock market. It works like your personal whistleblower informing you what to do with your shares on the market according to the data it collects from endpoints for SEC filing data on any stock/ticker in the US market.
Let’s explore the concepts to grasp how it works.
What is Insider Trade?
Insider trading is the action of buying and selling stock shares of a public company. The information for these shares are not open to public knowledge, though. That’s why it’s considered malpractice -there are monetary penalties even reaching up to jail - according to as it’s opposed to confidentiality and trust. It’s only legal when the investments are made based on the material information open to the public. Only the people inside that company - a director, corporate officer, board member, lawyer or anyone who has access to no-public info - can provide such information.
Here, our Insider Trading API gets the data provided by the SEC.
What is SEC?
Securities and Exchange Commission (SEC) basically is a protector of investors by maintaining fair market operations and building a public trust. It collects the reports - filing as a technical term- from corporations on their investment activities and inspect them via its commissioners. If the data is publicized - non-violated - like this, the inside trading is considered legal.
How does Insider Trading API work?
Insider Trading API has predictable resource-oriented URLs, accepts form-encoded request bodies, returns JSON-encoded responses, and uses standard HTTP response codes, authentication, and verbs. It uses API keys to authenticate requests. The GET endpoint provides SEC filing data on any stock/ticker. See our documentation for the details.
Use cases for Insider Trading API
Stock trading is the composition of activities people and companies perform as buyer or seller. The investment ideas come based on data, stories and observable economic balances. Insider Trading API helps you search and filter the filings and benefit from them on your investments and related commercial activities.
By using this API, you can provide:
- a service that monitors risks and inform investors about their portfolios
- advice for junior traders and create your own niche community by getting them interacting with each other on certain filings you share
- stock crashing signals by analyzing multiple sources