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Forex Hedge Funds Article:

Some Of The Great Advantages Of Automatic Forex Day Trading
By Donald Saunders
An increasing number of people are being drawn to foreign currency trading in preference to the variety of other types of investment and it is not hard to see why this is happening.

The market is the world's largest trading market with a steadily growing trading volume which has risen from in the region of $500 billion dollars in 1989 to $2 trillion today. It is also an extraordinarily liquid market which is not attached to any specific trading floor and operates around the clock across the globe making it effectively a permanently open market. As one market closes another is opening and you can effectively follow the markets around the globe as you trade and all but ignore the fact that your own home market is closed for the weekend.

It is not surprising therefore that foreign currency trading attracts a wide and growing variety of big and small traders who enjoy a wide choice of trading strategies based upon the myriad of factors which affect foreign exchange rates. For a lot of novice traders coming into the market it is the fact that there are so many different factors that affect currency exchange rates which they find especially attractive as it allow them to use a very large range of different tools when working in this extraordinarily exciting market.

Perhaps the biggest influence today however on the future growth of the market and on its popularity lies in automation which has never been simpler to achieve and which brings along with it many advantages.

Automated day trading permits trading to be effected in real time anywhere in the world and all but eliminates the losses that are so often
seen in manual systems which are operating operate in such a volatile and fast moving environment. Anyone who has tried trading with manual systems will know only too well the frustration brought on by a row of losses caused by nothing more than a time delay when selling or buying.

Automated trading also brings with it the ability to trade in a number of different currency markets simultaneously without any problems with the time zones of the markets in question. If you are sitting in the United States at 3 o'clock in the morning then automated trading lets you work with traders on the other side of the globe in several different countries at the same time without any difficulty.

One problem for a lot of traders is the management of risk and this is also reduced as we move towards automated trading. Manual systems sometimes leave traders nervous about whether payment will be made following the conclusion of a trade but as payments will now be synchronized in real time this is far less likely. Indeed, as the automated trading system continues to improve settlement systems will also be updated and any risks are likely to be more or less eliminated in the near future.

Technology has advanced by leaps and bounds over the past few years and will continue to advance in the years ahead. Most importantly, access to computer technology simply and cheaply from our own homes, or today even while we are traveling, means that we can all now manage our investments with ease. For those of us operating in the currency trading world automated currency trading will certainly be a welcome addition to an already terrific type of investment.

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