THE introduction of computers and specialized Forex software did not only replace the paper and pen as the trader’s main tool of trade, it also encouraged more market participation by retail investors and investors from all over the world. In fact, many Forex market experts cite the development of online trading systems and Forex software as one of the major reasons why daily Forex trade turnover has reached the $3 Trillion dollar levels.
Forex software are foreign exchange programs platforms that allow traders, investors and brokers to perform trades and other trading related activity in an online environment. Some of these systems are custom-built for brokerage houses while other Forex software packages were developed by technology companies with standard features and functionalities that can be tweaked or customized depending on the needs of the broker.
Given the nature of foreign exchange trades, practically all Forex software systems available in the market are configured to perform other tasks aside from the buy and sell functions. In most cases Forex software packages include: Chart generation, buy and sell operations, Forex trading robots or auto trading and Forex signal function and forecasting.
Chart generation Forex software
Success in the foreign exchange market requires a lot of technical analysis. Forex software help brokers, traders and other users spot trends, patterns and relationships quickly by generating relevant charts & tables on the fly. The charts created by Forex software range from the basic historical performance of currency pairs, advanced technical indicators to more complex pattern matching which is pretty helpful for beginner investors.
Trading Forex software
Almost all major Forex software packages available in the market today have a Forex trading functionality allowing users to buy and sell different currencies which just a few clicks. These programs require fast and reliable internet connection in order to make trades. Popular Forex software such as the metatrader fx need to be downloaded and installed into the computer while others are completely web-based, needing no installation. For mobile devices, there are also downloadable Forex software apps (for a small fee) that give users the ability to trade wherever they are.
Other Forex software incorporate charting capabilities to go along with the trading platform where traders can directly make purchase and sell orders by just clicking on a specific currency pair chart. Many brokers and investors find these systems very useful compared to other Forex software as the information they need to make intelligent trades are literally at the tip of their fingers.
Automated Forex software
Automated or sometimes called algorithmic Forex software is a trading program that performs preset commands or trading actions without the need for any manual tweaking. These systems are designed to assist new or beginner traders as the software follows specific algorithms that are either programmed by the software developer or customized by a foreign currency brokerage house. Popular Forex software brands such as Metatrader have similar automated systems called Expert Advisors that help new users get started with their trades.
Forecasting Forex software
Predicting Forex price and market movements is very difficult but it doesn’t mean traders cannot anticipate possible outcomes. This is where forecasting Forex software come in. These programs are designed to give traders several future outcomes based on historical data fed to it. Traders of course are warned not to completely rely on such predictions because like all programs, the forecast results coming from this Forex software is only good as the data that’s being inputted and it doesn’t take into account other Forex market realities.
Alerts and signals Forex software
Alerts or signals Forex software basically alerts/informs a trader on specific market behavior or performance so that timely action can be taken. A trader can set conditions for alerts to be made such as stopping more losses or take profit in a particular trade. Market alerts may also include breaking news about a particular country or currency, major policy statements made by monetary authorities and other critical global and political news.
As with the other Forex software, alerts and suggested actions should be taken with a lot of caution and cross referencing with other sources of information. Traders are advised to rely on other basic market fundamentals before making their buy or sell decisions.