Automated forex trading software analyzes current price charts for global currencies and looks at market activity across various timeframes. It then picks up on various signals like spread discrepancies, price trends and headlines that could affect currency prices. Using all these inputs, the software then identifies profitable trades on various currency pairs and executes them.
Currency speculators have another advantage of using automated forex trading software. Speculators tend to make trades based on currency spreads rather than interest rates, so for them, automated software can be even more effective because price discrepancies become obvious immediately. The trading system instantly reads these discrepancies and executes the trades.
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