Posts Tagged ‘Forex- Increased Trade Volumes’


Forex- Increased Trade Volumes

Automatic Foreign exchange Trading-Increased Trade Volumes

Automatic-Foreign-exchanThe belief of automatic Forex currency trading system is brain-catching.

Before the mechanization of the Forex exchange market, exchange-traded futures marketplace was the 1st to start mechanization. Then, the merchants on the Interbank spot FX marketplace decided to get closer the latest trend and moved too to the new system.

Automated Forex currency trading system helps traders to execute their trade on spot Forex exchange market automatically and anytime of the day, based on existing technical indicators and custom trading rules. There are numerous features a part of the automated buying and selling system, e.g.:

• Automatic trailing stops especially if the merchant is losing in a specific trade position;
• Account equity management;
• Stop and/or limit orders;
• Discretionary marketplace orders; and
• A range of technical analysis indicators within your discretion for enabling trend-following systems.

Automated Forex currency trading systems supports most of the next indicators (the technical support will depend on the technology used in addition to the available top features of the system):

• WMA (weighted moving average);
• EMA (exponential moving average);
• SMA (simple moving average);
• VMA (variable moving average);
• TMA (triangular moving average);
• TSMA (time series moving average);
• WATR (wilder’s average true range);
• VHF (vertical horizontal filter);
• Standard deviation;
• Trailing stops;
• Mass index;
• Fixed limits and stops, and others.

The achievement of the mechanization procedure to the Forex exchange market is attributed to many aspects, just like the next:

• Its ability to perform or execute trades in real time. Due to mechanization, a merchant can close trades within several milliseconds. It is impossible in manual systems, as previous trades are normally closed after several hours. In addition, there’s also instances wherein a merchant incurs several losses in a row that prevents him from making any fresh transactions. Thus, with automated Forex currency trading system, this problem could be avoided.

• Its ability to greater diversification. With automated trading system now in place, a merchant can trade in various local as well as international markets within varying time zones. In other words, you can place trade or close deals with different traders from various markets all over the world even at the middle of the night.

• Its ability to analyze short-term data. This feature is not available in manual trading system. Thus, traders using automated system have the bigger advantage since they can predict marketplace trends in less than an hour.

If you will consolidate the features as well as the advantages of automated Forex currency trading system, it will give you a solid conclusion: with the Forex exchange market on mechanization, you will be able to place more trades on a single day, thus increasing the average volume trades daily.

To further clarify the conclusion. Let us take the following scenario: If you are trading using the manual system, you will notice that it takes time before a merchant confirms if he will accept your deal or not. He will look on the marketplace condition first as well as the exchange rate of the currencies that you are trading with. Thus, if it takes time before a transaction will be finalized; there would be fewer trade volumes.

Now, if you are using the automated Forex currency trading system, the evaluation of exchange rates and marketplace conditions could be done within a few minutes, since Forex data are now updated in real time. Probably after less than an hour, you will be able to take your position whether you will push through the deal or not. If a Forex transaction per merchant is averaging within an hour, a single merchant can place as much as 8 trades within the regular trading hours (if he is following the day trading schedule) and additional trades beyond the regular trading hours. There are thousands of traders in just a single marketplace who can place such average number of trade per day. Combining it with the number of Forex markets around the world, the figure is just huge enough.

Additionally, the technology is changing continuously, thus there is a tendency that the average number of trades per day will increase, thus an opportunity of increased trade volumes on daily basis. With faster trade execution, that is a specific possibility.

Be thankful, the Forex exchange market is now at the helm of mechanization. Transactions are now faster, and earning money through Forex currency trading is now easier.

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