The choice of a good broker is also important to ensure the correct execution of trading operations in the forex market, since these are automatic systems that will only and exclusively execute an order previously entered by the user and where a broker quality cannot absolutely miss.For example, let’s imagine you want to use an automatic trading system in forex and want to make a trade with Euro and Dollar where the chosen exchange rate is 1.40. The user will obviously have arrived at this data on the basis of specific strategies or observing in the case of a more common social trading (such as the one offered by the broker eToro) a solution in which the exchange rate following particular events will undergo an increase in the rate. exchange rate EUR / USD. Well, if the user sets in automatic trading that the operation must be performed automatically when the exchange rate touches the value of 1.40, only if this operation occurs even for a second will the objective be achieved https://abouttrading.pt
THREE DIFFERENT PROFILES FOR ANALYZING THE ADVANTAGES AND DISADVANTAGES OF AUTOMATIC TRADING
As we can see, therefore, automatic trading with forex has a series of advantages and disadvantages , which must be absolutely evaluated before deciding whether to rely on these systems and which can be divided into three profiles:
Speed of execution of operations against a low user investment activity.
Diversification of investments against potential order non-execution.
Psychological resistance against low personalization of a subsequent strategy.
It being understood that the final decision whether or not to rely on automatic forex trading is still up to the user and the priority given to the aforementioned profiles. For example, a less experienced user could positively evaluate the little involvement on operations and the little psychological stress, while on the contrary a more experienced user could negatively evaluate the low personalization of a subsequent strategy.
SPEED OF EXECUTION AGAINST LOW FOREX USER ACTIVITY
As for the first profile to be analyzed to evaluate the convenience or otherwise of automatic trading, it is offered by the speed of execution against a low investment activity of the user. In the first case we are talking about a considerable advantage in terms of earnings with an automatic forex trading, which allows you to execute the purchase and sale operation on the currency at any time , even if the value is touched for only one second or if it occurs in particular moments of the day, in which you would not have had the material time to observe the operation and carry out the trade correctly.