Before we answer that question, let us first find out how big the trading market is. From there, we will get to know the importance of automated systems for the Forex market.

It is real that the Forex market is the most extensive market around the world not just in terms of average daily turnover and average revenue per trader. It is also the largest market in terms of participants as brokers and traders.

You name it, we’ve got it. See the following:

BANKS- they are not just for saving money and lending capital to enterprisers, but they are also one of the greater players in Forex market. Banks cater both to large quantity of speculative trading and daily commercial turnover. Well-established banks can trade billion worth of foreign currencies everyday. Some of the trades are accepted on behalf of their clients, but most are through proprietary desks.

COMMERCIAL COMPANIES- these commercial companies trade small amounts of foreign currencies compared to larger banks and their trades produce small and short-term effect on the market rates. However, the trade flows from transactions made by commercial companies are vital factors with regards to the long-term direction of the exchange rate of a certain currency.

CENTRAL BANKS- central banks play an important role in the Forex market. They have the control over the supply of different currency, inflation, and interest rate. They have also official target rates for the currencies that they are handling. They are responsible for stabilizing the Forex market by using foreign exchange reserves. Their intervention in the market is enough to stabilize a specific currency.

INVESTMENT MANAGEMENT FIRMS- these firms commonly manage huge accounts on behalf of their clients such as endowments and pension funds. They are using the Forex market to promote transactions, specifically in foreign securities. For example, an investment manager bearing an international equity portfolio needs to purchase and sell several pairs of foreign currencies to pay for foreign securities.

RETAIL FX BROKERS- they manage a fraction of the total volume of Forex market. A Forex broker estimates retail volume of between 25 to 50 billion dollars each day, which is presumably at 2% of the total market volume.

SPECULATORS- these are individuals who purchase and sell foreign currencies and profit through variations on its price as opposed to popular methods such as interest and dividends. They play the important role of transferring the risk to individuals who do not wish to bear it.

Only in Forex market, there are already six major players partaking on the $1.8 trillion worth of daily turnover. With a large number of Forex players, it is becoming a real need to switch from manual to automated Forex trading system.

Among the major Forex players mentioned above, the automated trading system is of great advantage to the speculators. They focus on the price fluctuations of several foreign currencies in order to profit, the real time data analysis will help them identify trades that will give advantage to them.

There are several automated Forex trading systems available in the market. There are also automated Forex systems that are offered for free or as part of their trading account acquired from their Forex brokers or agents. That kind of complimentary system packages are typically elementary trading system. Thus, if you are looking for more functions, you can avail of it through additional payments.

There are two kinds of automated Forex trading system. These are discussed in the following:

Desktop-based system- all Forex-related data are stored on your desktop’s hard drive. The system is unpopular to Forex traders due to the susceptibility of all data to computer virus and other security problems. Worse, when the computer malfunctions, all vital information might be lost and cannot be retrieved (unless you have some back-up files of your own). It is little expensive compared to the other types of automated trading system.

Web-based system- the security of your Forex account and other data are supplied by your web-based provider. These are hosted on secured servers. It is convenient considering that there will be no software required and it is compatible with your Internet browser.

You may also try different automated trading system demos first so that you will be able to opt for the automated Forex trading system that suits your personal preference and needs.

If you are just a small-time Forex player, it will be an advantage for you to use an automated trading system for your future trades.

If you would like to have more information please click here: The Forex Market

Forex gives you hundreds of opportunities daily to make small and great amounts of money, but it can only be achieved if you are well instructed and you practice with a demo account before entering the market with real money. Just like any job you have in life, you must prepare in theory and in practice to reach success.

You can make a lot of money in Forex, if you apply strategies and do a technical analysis of every movement of the market, skills you acquire from a specialized education. Probably you ask yourself if you need to make a considerable investment to make money, which comes to you do not need a great amount of money; it all depends on your investment capacity, which allows you to open an account that better fits such capacity.

Types of Accounts:

1. Micro Account: Opens with less than $2000. You may invest mini and micro lots.
2. Mini Account: Opens with $2001 to $20000. You may operate mini and micro lots.
3. Standard Account: Opens with more than $20000. You may only operate full lots.

Also, Forex allows you to open accounts and make money through leverage, which means that a broker, with solid finances, lends you money for you to operate in the market and this way get earnings from the differentials in the appreciation or depreciation of the operating currencies. Forex can become a risky activity when the leveraging takes novice traders to over leverage, because they get greedy and they want to make a fortune with little capital. This way, from 2 or 3 operations that end up in losses, the trader loses all of his capital. This is why it is important to know how to manage money, risk and every operation.

You may leverage from:

• 2:1 = give $1 you will get $2
• 10:1= give $1 you will get $10
• 100:1= give $1 you will get $100
• 200:1= give $1 you will get $200
• 400:1 = give $1 you will get $400

So, the amount of money that you can make depends on the number of pips you obtain and the size of the account that you opened. For this reason it is vital to be realistic on how much you can invest at first in relation with what you can make.

Also, the amount to lose depends on the number of pips lost and the size of the account. From the time an trader enters into a position, he loses because of the spread or differential from the brokers in each pair. If you use good strategies and correct money and risk management techniques, this will not be a relevant factor.

It is important to be able to increase earnings in the winning operations and minimize the amount lost in those operations where we lose money. This should be clear. With good money and risk management, a Forex trader can make money even in a strategy where he loses 6 out of 10 times. How? In the remaining 4, his earnings are higher than his losses in the 6 operations that ended up in loss.

The same way, a trader could lose money even winning in 8 out of 10 operations, following the same logic.

For this reason you will notice the first time that you enter the demo account, that when you take a position in the market, immediately it will show a “loss” in your money, which really is not a loss, but rather it is the commission that your broker charges from that moment for each position that you take in the market. In the demo accounts they add this commission for you to always have this in mind when getting a real account.

It is important to realize that you must look for a trustworthy broker, since unfortunately there are people that try to take advantage of others. For this, we recommend you to examine the history of the broker. Even though you may be able to select a broker from a variety of countries, you must make sure that the broker is legally established. For example: in the USA, a broker must be registered with the CFTC (Commodities Futures Trading Commission), or be a member of the NFA (National Futures Association). You may also verify this with a Costumer Protection Office, depending on his country of origin and its IT laws.

To make money, it is important that you know it will not happen overnight, it will take a whole process for you to become an expert trader. In this money making market intervene probability and consistency. Success is measured with profitability, and it does not matter the amount of operations, but also perseverance to reach your set goals in this business. For example, the trader must constantly follow a strategy and not search every week or month for a better strategy than the one before (a very common mistake among new traders).

You may also get long term or short term earnings, meaning that you may choose to make only 1 or 2 operations in a year to reach your goal, which is possible only if you use the correct strategies. You can make 10 or more operations a day, a week or a month, to reach the same goal and get earnings.

The recommendation if you are new at this is to start with few operations, but strong ones, in longer periods of time, like daily.

You can make money in Forex if you:

• Receive the proper education and training.
• Learn to determine in the market when to enter into a position and more importantly when to leave, either with losses or earnings.
• Use the correct leverage offered by brokers and you are realist when thinking of possible earnings.
• Are patient. Patience to practice, as well as for waiting the correct settings to enter into a position, as well as waiting to see for the right time to reach your goal for earnings.
• Do not get obsessed with reaching your earnings goal in the first week.
• Accept losses as part of the “investment game”.
• Properly manage your emotions and the psychological aspect of trading in Forex.

The Forex University specializes in courses for beginners and advanced traders, and teaches how to obtain earnings in a constant manner, managing Forex as a business. For more information, you may go to the following link:

http://www.udeforex.com/Cursos/Cursos-de-Forex.html

In short, it is possible to make money in Forex, but do not forget it requires: consistency, discipline, constant growth of our account, effort, time and study. You will not become rich overnight; you will only be able to make enough money in the long run to considerably improve your quality of life. Remember that the reliability that you obtain monthly from your capital, you may not be able to find in any other type of investment.

If you would like more information about Forex, please click here: The Forex Market

This is probably one of the questions that you need a reasonable answer. There are hundreds of investments out there that you can prefer, but why choosing trading foreign currencies instead?

Forex investment is unique in several aspects.

Its trading volume is relatively big compared to other market. It has extreme liquidity or the capability of either buying or selling the currency without causing significant fluctuation in the market price. It has the largest number and diversity of traders. The Forex market is one that have long trading hours (24 hours each day, except during weekends. Trading locations are almost everywhere, not only in the United States or major cities of Europe. There are different factors that impact on foreign exchange rate.

Another yelling fact that will make you excited to go on Forex trading: it has an average turnover in traditional foreign exchange market of around .88 trillion daily, according to the Triennial Central Bank Survey of the BIS (Bank for International Settlements). Here are the daily averages of turnover corresponding to the last 17 years:

$500 billion (April 1989)
$750 billion (April 1992)
$1.18 trillion (April 1995)
$1.48 trillion (April 1998)
$1.16 trillion (April 2001)
$1.88 trillion (April 2004)
$2.80 trillion (April 2008)

From the figures alone, you will notice that the average trend of Forex turnover is growing. It is estimated to reach as high as 2 to 3 trillion dollars within the next 8 to 10 years, if the number of traders around the world will continue to increase. As a matter of fact, everyone have the chance of getting a substantial portion of the market wealth pie, especially that the trading marketing is now on its automation process.

The concept of automation becomes the new trend to the Forex trading market. The Interbank spot Forex market has taken into consideration switching to the automated method.

There are several benefits that a Forex trader can obtain from automated Forex trading. Here are some of such benefits and figure out why Forex trading besides other investments like better the automated process.

Through automated process, transactions can now be done in real time. Although manual systems have existed for quite some time now, it is difficult to achieve the same benefits that the automated Forex system can offer to its traders. All of the trades can happen within a few milliseconds and can be a big plus for automated transactions against the manual system. There are problems that are addressed using automated Forex trading especially if the trader is losing a few times in a row that prevents him from making new trades. Such problem could be addressed using the automatic trading system.

With automated Forex trading, you will have a greater diversification. This means that you can trade in several markets in different time zones at any time. Execute trades with traders from Singapore or London even it is already 12 midnight in the United States. This benefit allows you a multiple exchange model alternative. You can use varying trading models to evaluate short-term data. This means that you can anticipate the trend for a shorter period of time, let us say from fifteen minutes to half an hour.

As previously mentioned, the Forex market is unique because of its extreme liquidity. This liquidity is increased in the market when it becomes automated.

Risk management problems are solved through automated Forex trading. International checks, which are commonly used in making purchases on the market, are synchronized through automated technology. Since the transaction in an automated process is now on real time, there is a small chance for delayed payments, reducing the risk of non-payment by either party. Although there are problems noted with the use of the automated system, it can be arrange through consistently-updated technology.

With automated Forex trading market, the prevision of $2-3 trillion average daily turnover within the next 8 to 10 years can be changed within the next 4 to 5 years. Given the quick yet efficient trades on varying time zones, automated Forex trading will now be one of the existing lucrative business around the world.

If you would like to have more information please click here: Forex Trading

Before the automation trading system of the Forex market, exchange-traded futures market was the first to switch on automation. Then, the traders on the Interbank spot FX market decided to follow the latest trend and also moved to the new system.

Automated Forex trading system allows traders to execute their trade on spot Forex market automatically and anytime of the day, based on existing technical indicators and custom trading rules. There are several characteristics included in the automated trading system, such as:

• Automatic trailing stops especially when the trader is losing in a specific trade position;
• Account equity management;
• Stop and/or limit orders;
• Discretionary market orders; and
• Several technical analysis indicators within your discretion for enabling trend-following systems.

Automated Forex trading systems supports most of the indicators (the technical support will depend on the technology, and also on the available features of the automated system):

• WMA (weighted moving average);
• EMA (exponential moving average);
• SMA (simple moving average);
• VMA (variable moving average);
• TMA (triangular moving average);
• TSMA (time series moving average);
• WATR (wilder’s average true range);
• VHF (vertical horizontal filter);
• Standard deviation;
• Trailing stops;
• Mass index;
• Fixed limits and stops, and others.

The success of the automation process to The Forex market is credited to several factors, as follows:

• Its ability to perform or execute trades in real time. Due to the automation, a trader can close trades within a few milliseconds. This  is impossible in manual systems, as previous trades are normally closed after several hours. There are also instances wherein a trader incurs several losses in a row that prevents him from making any fresh transactions. Due to the automated Forex trading system, this problem could be avoided.

• Its ability to greater diversification. Due to the existence automated trading system now in place, a trader can invest in various local as well as international markets with all varying time zones. This means that you can place trade or close deals with different traders from various markets around the world even at the middle of the night.

• Its ability to analyze short-term data. This cannot be done in manual trading system. Thus, traders using automated system have the bigger advantage since they can predict market trends in less than an hour.

The consequence to consolidate the features as well as the benefits of automated Forex trading system, will help you conclude the following: with the Forex market on automation, you will be able to place more trades on a single day, though increasing the average volume trades daily.

For further clarification on the conclusion. Let us take the following scenario: If you are trading using the manual system, you will notice that it takes time before a trader confirms if he will accept your deal or not. He will look on the market condition first as well as the exchange rate of the currencies that you are trading within the same market. If it takes time before a transaction will be finalized; there would be fewer trade volumes.

If you are using the automated Forex trading system, the evaluation of exchange rates and market conditions could be done just in a few minutes, given that Forex data are now updated in real time. Probably after less than an hour, you will be able to take your position whether you will push through the deal or not. If a Forex transaction per trader is averaging within an hour, a single trader can place as much as 8 trades within the regular trading hours (if he is following the day trading schedule) and additional trades beyond the regular trading hours. There are thousands of traders in just a single market who can place such average number of trade per day. Combining it with the number around the world, the figure is just huge enough.

Additionally, the technology is changing continuously, though there is a tendency that the average number of trades per day will grow, thus a possibility of increased trade volumes in the market on daily basis. With faster trade execution, that is a certain possibility.

Be thankful, the Forex market is now at the helm of automation. Faster transactions make earning money through Forex trading easier.

If you would like to have more information please click here: Automated Forex Trading