An Examination Of The Considerable Advantages Of Automatic Forex Day Trading

By Author: Donald Saunders
Total Articles: 84
Comment this article

More and more people are being drawn to Forex trading rather than to the variety of other forms of investment and it is easy to see why this is the case.

The Forex market is the biggest trading market in the world with a growing trading volume which has risen from some $500 billion dollars in 1989 to $2 trillion today. It is also an extremely liquid market which is not attached to any particular trading floor and operates 24 hours a day across the world making it effectively a permanently open market. As one particular market closes another is opening for trading and you can effectively follow the markets around the world as you trade and all but ignore the fact that your own home market will close for the weekend.

As a result it is no wonder that Forex trading attracts a wide and growing variety of both big and small traders each of whom enjoys a very wide choice of trading strategies based upon the many different factors which affect foreign currency rates. In fact for a lot of traders entering the market it is the many different things that affect currency rates which they find particularly attractive as it ...
... allow them to use a very large range of different tools when trading in this amazingly exciting market.

Perhaps the biggest influence nowadays however on the growth of the market and on its popularity is to be found in automation which has never been easier to achieve and which brings along with it several advantages.

Automated Forex trading permits trading to be effected anywhere in the world in real time and more or less eliminates the losses that are so often a feature of manual systems which are operating operate in such a volatile and rapidly moving environment. Anyone who has tried trading using manual systems will know very well the aggravation resulting from a series of losses caused by nothing more than a time delay when selling or buying.

Automated trading also permits you to trade in a wide range of different currency markets simultaneously without any regard for the time zones of the particular markets concerned. If you are in the US at 1 o'clock in the morning then automatic trading allows you to work with traders on the opposite side of the world in various different countries all at the same time without any difficulty.

For a lot of traders one problem is the management of risk and this too is reduced as we move towards automatic trading. Manual systems occasionally 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 the automatic trading system continues to to be improved it is clear that settlement systems will also be developed and such risks will probably be all but eliminated in the near future.

Computer technology has advanced by leaps and bounds over the past few years and will continue to advance in the years ahead. Most importantly, access to computer technology simply and inexpensively from our own homes, or nowadays even while we are away from home, means that we can all now deal with our investments with ease. For those of us operating in the world of currency trading automatic foreign currency trading will undountedly be a very welcome addition to an already terrific type of investment.