An growing number of people are being attracted by foreign currency trading in preference to the various other types of investment and it is easy to see why this is happening.
The Forex market is the biggest trading market in the world with a growing trading volume that has increased from approximately $500 billion dollars to $2 trillion in the last twenty years. It is also an extraordinarily liquid market that is not linked to any particular trading floor and operates around the clock around the world making it in effect a permanently open market. As one particular market closes its doors another is opening up and you can follow the markets across the world as you trade and more or less eliminate the fact that the market in your home country will close for the weekend.
It is no wonder therefore that foreign currency trading appeals to a wide variety of both big and small traders who enjoy a very wide choice of trading strategies resulting from the large number of factors that affect foreign exchange rates. For a lot of traders entering the market it is the fact that there are so many different factors that affect currency rates that they find most attractive as it permits them to use a large range of different tools when working in this amazingly exciting market.
Perhaps the biggest influence today however on the growth of the market and on its popularity is to be found in automation which is easier than ever to achieve and which brings along with it many advantages.
Automated foreign currency trading permits trading to be conducted anywhere in the world in real time and virtually eliminates the losses so often a feature of manual systems that are operating operate in such a fast moving and unpredictable environment. Anybody who has experienced trading with a manual system will know very well the aggravation arising out of a row of losses produced by nothing more than a time delay in selling or buying.
Automatic Forex trading also permits you to operate in several different currency markets at the same time without any problems with the time zones of the particular markets in question. If you are in the USA at 2 o’clock in the morning then automated trading allows you to conduct business with traders on the opposite side of the world in several different countries all at the same time without any difficulty.
One problem for a lot of traders is that of the management of risk and this risk too is reduced as we move towards automated trading. Manual systems occasionally leave traders nervous about whether payment will be forthcoming following the conclusion of a trade but as payments can now be matched in real time this is much less likely. Indeed, as the automated trading system continues to be developed it is clear that settlement systems will also be developed and any risks will probably be more or less eliminated before too much longer.
Technology has advanced considerably in recent years and will continue to do so for many years to come. Most importantly, access to that technology easily and cheaply from the comfort of our own homes, or today even while we are mobile, means that we can all now deal with our own investments easily. For those working in the currency trading world automated currency trading will certainly come as a very welcome addition to an already magnificent investment vehicle.