Let The Software Do The Trading For You - Automated Trading

By Author: John Foster
Total Articles: 23
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Automated trading a very well known term or Jargon for those who have been trading the financial market. It is actually a computer trading program that automatically submits trades to an exchange. Technology has advanced considerably in recent years & with the increase use of Electronic Trading or E-trading, one need to have such fast & advanced trading systems to keep oneself up to date & in line with the frequently changing financial market environment with an ease. There are plenty of trading gateways available to choose from. These automated trading programs offer many advantage over the human mind.

The main advantage of automated trading is that it can send orders a lot faster than a human being. Elimination of “Human Emotion/Instinct” factor is the biggest advantage of automated trading. No matter where you are located & with whom you want to trade an automated trading system allows different companies from all around the world to trade with one another & in this way it increase the efficiency of the markets. It reduce the cost & effort involved in dealing with the intermediator [broker] ...
... as now one can have access to the globalised market, you can now trade futures on Eurez or Globex at just the click of button. There is complete transparency in the trading as the information flows around the world electronically.

Automated trading systems can improve the trade execution to some extend & the losses caused by the time delay can now be controlled to some extend. Three main advantage of having an automated trading are: It identifies & react to the trading opportunities faster; it can track more markets than ever as it gives you the power to monitor dozens or even hundreds of securities at once & do it more efficiently & last but not the least it increase your trading discipline by reducing the emotion factor.

Automated trading systems can easily track your orders, start live trading in seconds.

Automated systems check past trends & then using appropriate information apply it to the current market data to investigate further about the trading opportunities in the market so that profitable trade can be made.

There are many benefits from the growth in automated trading but you just can’t ignore the absence of human judgment.