Why trade on Forex?
This might be one of the questions that you need a reasonable answer. There are hundreds of investments out there that you can refer to, but why just trade foreign currencies?
Foreign exchange investment is unique in various aspects.
Indeed, the trading volume is relatively large compared to other markets.
It has extreme liquidity or the ability to buy or sell currencies. And also without causing significant market price movements.
Amount and variation of the biggest traders.
This is one market that has long trading hours (24 hours a day), except Saturday and Sunday.
Trading locations are almost everywhere, not only in the United States or major cities in Europe.
There are various factors that affect foreign exchange rates.
Another whooping fact that will make you excited to do Forex trading. It has an average turnover in the traditional foreign exchange market of around $ 1.88 trillion every day.
From the numbers only, you will see that the average trend in Forex circulation is increasing. It is estimated to reach 2 to 3 trillion dollars in the next 8 to 10 years. That will happen if the number of traders around the world will continue to increase. As a matter of fact, everyone has the opportunity to get a large piece of cake the wealth of the Forex market. Especially that Forex trading marketing is currently in the process of automation.
Use of an automated forex trading system.
The concept of automation is becoming a new trend in the foreign exchange trading market. The Interbank spot foreign exchange market has also considered switching to the automatic method.
There are several benefits that Forex traders can get from automated Forex trading. Here are some of these benefits. And we will find out why trading Forex, futures, and commodities, prefers automatic processes.
Through automated processes, transactions can now be done in real time. Although manual systems have been around for some time now. It may be difficult to achieve benefits in such a way. So that the automated Forex system can offer traders. All trades can occur in a few milliseconds. Apart from that, it can be a big added value for automatic transactions of manual systems. In fact, there are problems that are handled using automated Forex trading. Especially if the trader loses several times in a row which prevents him from making a new trade. Such problems can be overcome by using an automated trading system.
With automated Forex trading, you will have a greater diversification. This means that you can trade in various markets in different time zones at once. You can trade with traders from Singapore or London. Even at 12 midnight in the United States. This benefit allows you to double exchange model options. You can use various trading models to evaluate short-term data. This means you will be able to predict trends for shorter periods of time. Say from fifteen minutes to half an hour.
As mentioned earlier, the Forex market is unique because of its extreme liquidity. This liquidity increases when the market runs automatically.
The problem of risk management is resolved through automated Forex trading. International checks, which are commonly used to make purchases on the Forex market, are synchronized through automatic technology. Because the transaction is in an automated process now in real time, there is a small chance that the payment will be delayed. The jam can also reduce the risk of not being paid by either party. Although there are problems noted with the use of automated systems, this can be corrected through consistently updated technology.
With the automated Forex trading market, predictions of daily turnover averaged $ 2-3 trillion in the next 8 to 10 years. And that can be changed in the next 4 to 5 years. Remember trading is fast but efficient in various time zones. Automatic Forex trading will now become one of the profitable businesses in the world.