Throttling Policies
Throttling policies are rules defined by an API provider to manage the rate at which users can access data or execute trades. These policies are essential for protecting the integrity of the platform's infrastructure and preventing malicious activity like DDoS attacks.
By limiting the number of requests per second, the exchange ensures that its services remain available and responsive for all users. Throttling is often implemented using algorithms like token buckets or leaky buckets, which allow for short bursts of activity while enforcing a long-term average rate.
For high-frequency traders, understanding these policies is vital to ensure that their software can operate without being blocked. Developers must build robust error handling into their applications to manage situations where throttling is triggered.