Concepts
Authentication
The process of verifying a client or user's identity to ensure that only authorized entities can access protected resources within the ABX platform. The ABX API uses the OAuth 2.0 protocol for authentication, requiring clients to present credentials such as a client ID and client secret to obtain an access token.
Access Token
A secure string issued by the ABX platform after successful authentication. The access token grants the client or user permission to interact with protected endpoints in the ABX API. It is included in the authorization header of each API request.
Market Data
A collection of financial information such as exchange rates, liquidity conditions, and other metrics that are crucial for analyzing foreign exchange markets. The ABX platform aggregates market data from multiple liquidity partners to provide up-to-date pricing information for currency pairs.
Liquidity Provider
A financial institution or market participant that offers quotes (prices) for currency pairs, enabling clients to trade foreign currencies. Liquidity providers respond to RFQs (Request for Quotes) by offering buy and sell rates for specific currency pairs.
Quote
An offer from a liquidity provider that details the rate at which a currency pair can be exchanged. A quote includes the buy and sell prices, and may have additional parameters such as the expiration time and liquidity provider source.
Request for Quote (RFQ)
A mechanism used by clients to solicit pricing information from liquidity providers. By submitting an RFQ, the client requests quotes for specific currency pairs, which are then provided by multiple liquidity providers for evaluation.
Trade Execution
The process of completing a currency exchange transaction based on an accepted quote. Once a client selects a quote, the ABX platform finalizes the trade by executing the transaction between the buyer and seller of the currency pair.
Payment Instructions
Detailed information provided by a client to specify how funds should be transferred to the recipient after a trade. Payment instructions typically include details such as the recipient’s bank account number, IBAN, sort code, and other required banking details.
Beneficiary
The recipient of funds in a cross-border payment transaction. Payment instructions generally include the beneficiary's account information, such as their bank details and the currency they will receive.
Currency Pair
A financial instrument that quotes the exchange rate between two currencies. In a currency pair, the first currency listed is the base currency, and the second is the quote currency. For example, in the currency pair USD/KES, USD is the base currency, and KES is the quote currency.
Base Currency
The first currency listed in a currency pair, which is being bought or sold in a transaction. For example, in the currency pair USD/KES, USD is the base currency.
Quote Currency
The second currency listed in a currency pair, which is used to express the value of the base currency. For example, in the currency pair USD/KES, KES is the quote currency.
Fill or Kill (FoK) Order
A type of trade order where the entire order must be executed immediately or not at all. If the liquidity is insufficient to fill the order in full, the order is canceled.
Aggregation
The process of combining market data from multiple liquidity providers to provide a consolidated view of the best available rates and market conditions. Aggregation ensures that clients receive competitive pricing from various sources.
IBAN (International Bank Account Number)
A standardized international numbering system used to identify individual bank accounts across borders. It facilitates efficient and accurate cross-border payments by ensuring correct account identification.
SWIFT/BIC Code
A unique identifier for a bank or financial institution used in international transactions. SWIFT codes (or BIC codes) are used to route payments accurately between banks globally.