Bulls n' Bears

Automated Trading Systems

There are many investors who reap the benefit of currency trading in the international financial market. It is also called foreign exchange market. As there are various currencies across the countries, their value towards each others changes according to the marketing conditions. When a currency appreciates/depreciates its value in terms of another currency the possiblity for profit/lose arises in the trading of such currencies.

The fundamental strategy is to buy a currency when its value is high and sell when its value is lower in terms of another currency.

You can earn the net difference as profit margin. With the advancement in technology you can trade among currencies by sitting in your own home using your computer. There is a mechanism called Automated Trading systems which can aid you to trade and you do not need to sit always looking at the computer monitor to evaluate the marketing condition. Automated trading systems can work with your strategy that has set on the basis of past information. A high amount of risks due to automated trading systems is inevitable as the trade takes place on the basis of statistical data.

The reason is that yesterdays marketing condition cannot be the one today. Hence there is possibility that you may loose your invested money by incuring loss out of the trading done with the help of automated trading systems. There are some forex softwares which offer more than 95 percent accuracy in their transaction. That may be true in comparison with the software testing they did. But the risks due to automated trading systems cannot be neglected as no softwares has the ability to predict future market fluctuations.

You are dealing with your own money or borrowed money. The intention is only to reap the profits and not to loose it by utilising the aid of automated trading systems.