Most foreign exchange activity consists of the spot business between the US dollar and the six major currencies (Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar). The Forex market is so large, and is hosting so many participants, that no single player, governments included, can directly control or make any significant influence over the direction of the market. That makes the Forex market the most exciting market in the world. Central banks, commercial banks, international corporations, money managers, speculators, and private individuals – are all involved in Forex trading.
When we honestly ask ourselves which person in our lives mean the most to us, we often find that it is those who, instead of giving advice, solutions, or cures, have chosen rather to share our pain and touch our wounds with a warm and tender hand. The friend who can be silent with us in a moment of despair or confusion, who can stay with us in an hour of grief and bereavement, who can tolerate not knowing, not curing, not healing and face with us the reality of our powerlessness, that is a friend who cares. ~Henri Nouwen
The automated forex software usually come and desktop in the office or on the Internet. Internet-based versions are generally several advantages. For example, with the help of Internet-based software, you will not have to deal with problems of maintenance and software usually offers more data security software based on the desktop. Normally, the system of automated forex software is a series of secure encrypted data, such as a credit card, that to protect their safety.
An Internet system, it is easier than you can access your account at any place which may be an advantage if you travel frequently, and you do not need the download or save the software around on your computer. But the effectiveness of the systems on the Internet commerce affected is also based on the speed of your Internet connection. With a DSL or broadband is usually the best to get automated forex software.
When you trade, you will always trade a combination of two currencies. For example, you will buy US dollars and sell euro. Or buy euro and sell Japanese yen, or any other combination of dozens of widely traded currencies. But there is always a long (bought) and a short (sold) side to a trade, which means that you are speculating on the prospect of one of the currencies strengthening in relation to the other.
The trade currency is normally, but not always, the currency with the highest value. When trading US dollars against Singapore dollars, the normal way to trade is buying or selling a fixed amount of US dollars, i.e. USD 1,000,000. When closing the position, the opposite trade is done, again USD 1,000,000. The profit or loss will be apparent in the change of the amount of SGD credited and debited for the two transactions. In other words, your profit or loss will be denominated in SGD, which is known as the price currency. As part of our service, Saxo Bank will automatically exchange your profits and losses into your base currency if you require this.
Though automation of Forex trading provides a trader with a wider range of opportunities, and more free time, there are also some disadvantages to consider.
The major of them is absence of intuition and rigidity peculiar to any software. Flexibility of the trading application in use is an important factor to pay attention to when choosing an automated trading system. In case the program is flexible enough, under a wise supervision of the trader, it may become a great tool for increasing profit received from Forex currency trading.
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