The Realm of the Automated Forex Trading System

The Realm of the Automated Forex Trading System: How important is an automated system to the Forex trading system? Before we answer that question, let's first determine how big the Forex trading market is. From there, we will know the importance of an automated system for the Forex market.

The Realm of the Automated Forex Trading System

It is true that the Forex market is the largest market in the whole world not only in terms of average daily turnover and average income per trader. This is also the largest market in terms of participants. See below the following areas of the Automatic Forex Trading System:

1. BANK

they are not only to save money and lend capital to entrepreneurs, but they are one of the main players in the Forex market. The bank serves both speculative trade and large daily turnover. Established banks can trade billions of dollars of foreign currency every day. Some trades are carried out on behalf of their clients, but mostly through proprietary tables.

2. COMMERCIAL COMPANY

these commercial companies trade a small amount of foreign currency compared to large banks and their trade has small and short-term effects at the market level. However, trade flows from transactions carried out by commercial companies are important factors in relation to the long-term direction of the exchange rate of a particular currency.

3. CENTRAL BANK

the central bank plays an important function on the Forex market. They have control over the supply of currencies, inflation, and different interest rates. In addition, they also have official target rates for the currencies they handle. They are responsible for stabilizing the Forex market through the use of foreign exchange reserves. Their intervention in the market is enough to stabilize a particular currency.

4. INVESTMENT MANAGEMENT FIRMS

these companies generally manage large accounts on behalf of their clients such as endowments and pension funds. They use the Forex market to facilitate transactions, especially in foreign securities. For example, an investment manager who has an international equity portfolio needs to buy and sell several pairs of foreign currencies to pay for the purchase of foreign securities.

5. RETAIL FX BROKERS

they handle a small portion of the total volume of the Forex market. A single retail Forex broker expects retail volumes of between 25 to 50 billion dollars every day, which is estimated at 2% of the total market volume.

6. SPECULATORS

these are individuals who buy and sell foreign currencies and profit through price fluctuations compared to popular methods such as interest and dividends. They carry out the important role of transferring risk to individuals who do not want to bear it.

In the Forex market alone, there are six major players who have participated in a daily turnover of 1.8 trillion dollars. With a large number of Forex players, there really is a need to switch from a manual Forex trading system to automatic.

Among the major Forex players mentioned above, the automated trading system is a big advantage for speculators. Because they focus on the fluctuations in prices of various foreign currencies to profit, analysis of real-time data will help them determine the trade that will benefit them.

There are several automated Forex trading systems available on the market. There are also automated Forex systems that are offered free of charge or as part of their trading accounts obtained from their brokers or Forex agents. Free system packages like that are usually basic trading systems. So, if you are looking for more features, you can use it through additional payments.

There are two types of automated Forex trading systems. These are discussed as follows:

Desktop-based system - all Forex related data is stored on your desktop hard drive. This system is not popular for Forex traders because all data is vulnerable to computer virus contamination and other security problems. Even worse, when the computer doesn't work, all important information may be lost and cannot be retrieved (unless you have some of your own backup files). However, this is a little expensive compared to other types of automated trading systems.

Web-based system - the security of your Forex account and other data is provided by your web-based provider. This is hosted on a secure server. This is also convenient in the sense that there will be no software needed and universally compatible with your Internet browser.

You can also try different automated trading system demos so that you can determine the automated Forex trading system that suits your personal preferences and needs.

Even if you are just a small Forex player, it will benefit you if you will use the automated Forex trading system to trade your future

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