Foreign Exchange Autotrading

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Foreign Exchange Autotrading

Forex autotrading is a foreign exchange market. The buy or sell orders are sent out to be executed in the market when a certain set of criteria is met.

Autotrading systems, or programs to form buy and sell forex signals, are used typically by active traders who enter and exit positions more frequently than the average investor. The autotrading criteria differ greatly, however they are mostly based on technical analysis.[1]



Forex autotrading originates at the emergence of online retail trading, since about 1999 when Chicago Mercantile Exchange as early as in the 1970s.


There are two major types of Forex autotrading:

  • Fully automated or robotic Forex trading: This is very similar to citation needed]
  • Signal-based Forex autotrading: This autotrading mode is based on manually executing orders generated by a trading system. For example a typical approach is to use a service where traders all over the world making their strategies available to anyone interested in the form of signals. Traders may choose to manually execute any of these signals in their own broker accounts.[citation needed]


An automated trading environment can generate more trades per market than a human trader can handle and can replicate its actions across multiple markets and timeframes. An automated system is also unaffected by the psychological swings that human traders are prey to. This is particularly relevant when trading with a mechanical model, which is typically developed on the assumption that all the trade entries flagged will actually be taken in real time trading.[2]

Forex trading accessible to a large number of people.


As a decentralized and relatively unregulated market, it is extremely attractive to a number of U.S. Securities and Exchange Commission have issued warnings and rules to avoid fraudulent Forex trading behavior.

See also


This article uses material from the Wikipedia article foreign exchange autotrading, which is released under the Creative Commons Attribution-Share-Alike License 3.0.

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