IP Whitelisting
IP Whitelisting is a security measure that restricts access to an API or server to only those requests originating from a pre-approved list of IP addresses. By blocking all other traffic, this technique significantly reduces the attack surface for trading bots and financial infrastructure.
Even if an attacker obtains a valid API key, they would be unable to use it unless they could also spoof the source IP address, which is typically difficult. In the context of derivatives trading, where high-frequency interactions occur, IP whitelisting provides a crucial barrier against unauthorized trade execution.
It is often used in conjunction with other security measures like API key rotation and rate limiting. This simple but effective control is a staple of professional-grade trading environments.