The Realm Of Automated Forex Trading System

by : Tom Roberts

First off we must confirm a few basic facts about the foreign currency trading system. It is the largest financial market on the planet and has the greatest number of participants and investors. The huge daily turnover and presence of such a large quantity of traders and investors requires a system that meets superlative needs for a massive industry. Why don't you consider the following points when discussing the importance of an automated system for the forex trading market:

Banks are one of the bigger 'players' in the forex trading system and are not just here to service your frugal needs and capital loans (addressing all you blood hungry entrepreneurs out there). The banks service a massive amount of speculative trading and service the daily monetary circulation as well by trading and investing billions of dollars in the foreign currency market daily, considering a portion if the investments are on behalf of their clientèle and the rest are traded by the bank itself.

Commercial companies are up next. here's how it goes folks. get yourselves comfortable...did you pour that bourbon yet? Well, if you didn't please do so. I'll wait. Ah good. there we go. I like to do these things in a relaxed fashion. Anyways, back to commercial companies. These guys are also players in the foreign currency market although their investments are slightly smaller than the bank trades, however still significant enough to make this list. the trades made by these companies may be more short term but their impact on the forex market is undeniable and influences the exchange values when it comes to the overall long term trajectory.

Number three on our fabulous list are central banks. You may not realize it but central banks play a somewhat significant role in the forex market and have a certain amount of influence on the currency values, interest rates (blasted interest rates!) and market inflations as well as influencing the stability of the forex market via foreign currency exchange reserves. They have impact also due to established trajectory rates for the currencies that they themselves are trading.

Guess who comes next? How could we leave them out? Investment management firms. yes, yes. Those young,cocky, rosy cheeked well fed prep boys straight out of college who are investing YOUR money. Leave it up to them. Passion succeeds where reason fails and surely you know that they have no reason. Just kidding. Actually, aside from the fact that these firms handle massive amounts of money for their prestigious clientèle part of their management extends to the forex market where they mediate transactions via the currency system, mainly in foreign securities. If you don't know what I'm talking about, please go back to the previous page.
Oh la la we've come to my favorite rookies. the retail forex brokers. these boys ain't as rosy cheeked as our previous lads but they certainly know how to manage a small, yet significant portion of the forex trading system. One retail forex broker conducts transactions of twenty five to a fifty billion dollars a day, in retail volume. It may only consist of 2 percent of the currency trading market but hell, that's a lot more than you ever did.

Now we get to the more interesting humanoids. The speculators. It almost sounds scary, but honestly, they're just mammals with fore brains, like me and you. these courageous dudes buy foreign currencies and reap benefit not from interest and dividends but directly from the currency market's fluctuations. They are pretty high risk. that's the only scary thing about them. although it's best this way because somebody has got to handle the priceless burden of risk. So far we have named six hardcore players involved in the volatile yet lucrative foreign currency trading market and they all are involved in the daily two trillion dollar circulation. ergo, a sophisticated and automated system would be most appropriate in handling the complex arena.

There is one group for which the automated forex system works to their benefit big time and these are the speculators (blasted clever risk takers!). They are concerned about the market fluctuations, specifically the values and real time info ameliorates their process of determining which trades they should invest in. Super smart and super slick.

Manual systems have become pretty obsolete in most financial markets and most of the financial systems have incorporated the process of atomization. Some automation systems come without cost and are pretty reliable and sometimes the automated system is received when opening a forex account online or via a broker. what a world! Usually the automated systems that come with opening an account are pretty simple but you may purchase a more advanced system by adding an additional fee. Now that you're a forex market genius and know why we need automation (yes an automation nation! who needs to think anymore?( we shall discuss the two types of automation systems.

the first system is desktop based and all your important forex information is put in your desktops hard drive. A lot of traders do not appreciate this system because your info is exposed to potential viruses or other bastards that hack into your computer security. Plus, if your computer all of a sudden loses a screw and goes nuts, most of or all of your data may be lost and never ever ever found again. pretty scary, even more than the forex speculators. It is however significantly cheaper and should you choose this type of system, always make sure to have back up.

The second type of system is web based and your forex account's security and other info are available via your web provider. Obviously the host would be a secure server and this system is far more efficient since you need no software and it is compatible with any type of computer because it's via the web. the best part is the fact that if anything gets screwed up or lost-you have THEM to blame.

Basically you should explore various demos and see what tickles your fancy. just like choosing a mate, you know what I mean? Trial and error, baby, trial and error. By doing a little research you will find the system that suits your forex trading strategies.