Advantages Of Automated Forex Trading

By: Donald Saunders

More and more people are being attracted by Forex trading in preference to the variety of other types of investment and it is easy to see why this is the case.

The Forex market is the world's biggest trading market and demonstrates a growing trading volume which has risen from about $500 billion dollars in 1989 to $2 trillion today. It is also a very liquid market which is not attached to any specific trading floor and operates 24 hours a day across the world making it effectively a permanently open market. As one market closes its doors another is opening and you can follow the markets across the world as you trade and more or less ignore the fact that your own home market will close at the weekend.

It is not surprising therefore that Forex trading attracts a wide and growing variety of both big and small traders who enjoy a wide choice of trading strategies based upon the many different factors which affect foreign exchange rates. Indeed for many traders coming into the market it is the many different factors which affect foreign currency exchange rates which they find most attractive as it allow them to use an enormous range of tools when working in this amazingly exciting market.

Perhaps the largest influence nowadays however on the growth of the market and on its popularity can be found in automation which is simpler than ever before to achieve and which brings along with it many more advantages than disadvantages.

Automatic foreign currency trading allows trading to be conducted anywhere in the world in real time and all but eliminates the losses so often seen in manual systems which are trying to operate in such a volatile and fast moving environment.

Anyone who has experienced trading using manual systems will know only too well the annoyance resulting from a series of losses caused by nothing more than a time delay when selling or buying.

Automated Forex trading also permits you to operate in a wide range of different currency markets simultaneously without any regard for the time zones of the markets in question. If you are in the US at 2 o'clock in the morning then automated trading allows you to conduct business with traders on the other side of the world in several different countries at the same time without any problem.

For many traders one problem is the management of risk and this is also reduced as we move towards automated trading. Manual systems sometimes leave traders nervous about whether payment will be made following the conclusion of a trade but because payments will now be synchronized in real time this is a lot less likely. Indeed, as automatic systems continue to be developed settlement systems will also be updated and any risks are likely to be virtually eliminated in the near future.

Technology has advanced considerably in recent years and will continue to do so for many years to come. Most importantly, access to that technology simply and cheaply from our own homes, or nowadays even when we are away from homeFeature Articles, means that we can all now handle our investments with ease. For those operating in the currency trading world automatic Forex trading will undountedly come as a welcome addition to an already great investment vehicle.

Foreign Exchange
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