Were you aware that more than $7 million dollars changes hands throughout the Forex marketplace on a daily basis? While the majority of these movements can be attributed to institutional trades, there is little doubt that this is one of the largest, and most liquid, markets in the world.
This is the very same reason why traders of all sizes are keen to leverage the inherent opportunities. Still, keeping up with such a fast-paced ecosystem can be extremely challenging. Astute traders are therefore turning towards the latest technological innovations to develop an edge over the competition. What are some recent advancements, and what benefits might they be able to offer?
Dedicated Investment Portals
This is arguably the most well-known option. Those who choose to partner with a dedicated online broker have already bent the odds in their favour. The latest multi-asset brokerages offer a wide range of investing options; equally suited for individuals and institutional traders alike. Furthermore, the ability to monitor one's holdings on a 24/7 basis provides a level of oversight that is much more difficult to achieve through personal account management alone. Adopting a proactive stance is vital when dealing with the liquid nature of the Forex ecosystem.
AI-Powered Trades
The notion of executing successful Forex trades with the help of a smart "bot" was the stuff of fiction until recently. It is therefore interesting to observe that artificial intelligence has already begun to transform the ways in which online investments take place. One of the latest advancements comes in the form of smart algorithms (known as "bots") capable of analysing the markets, and determining which Forex positions are the most profitable. The theory here is that this will provide investors with a degree of automation that was hardly possible in the past.
However, we need to remember that even the latest generative AI packages are not without their faults. Human intervention is still required, and some experts have questioned the risks associated with solely relying upon this method. It will therefore be interesting to see how artificial intelligence continues to evolve in relation to Forex investing.
Spot-On Accuracy Within Seconds
There are many variables which will need to be addressed before executing any type of Forex trade. Examples include the spread, the margin, price movements based on the number of pips, and the size of a position required to turn a profit. These can obviously represent daunting concepts; especially for those who execute dozens of trades during each session.
One of the best ways to simply the entire process involves an approach known as kalkulator trading. Investors will employ an online calculator capable of quickly deciphering the variables outlined above. There are also several different types of calculators such as:
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Margin calculators
●
Position size calculators
● Pip calculators
Note that some of these can be accessed as downloadable freeware, although the most comprehensive tend to be offered as standard features within a larger multi-asset management service.
Saving Time and Money
Many ongoing studies have indicated that another pronounced benefit of digital trading technology involves a substantial reduction in fees and commissions. This is crucial for every investor, as costs will ultimately determine one's net profits (or losses). Furthermore, the best platforms make these fees clear from the beginning. There is indeed nothing worse than executing a position only to subsequently realise that the associated charges have all but negated any gains.
Intuitive User Interfaces
The abbreviation (UI) is often used to describe the intuitive nature of a website, and it equally applies to online trading. The latest services provide a user-friendly interface that is suitable for those without much prior experience. This has opened up the doors to an entirely new generation of investors, and plenty of lucrative opportunities now await. There is little doubt that this trend will gain even more momentum in the years to come.
Are There Any Downsides?
Objectivity is important when discussing any type of technological advancement, and some potential downsides have been cited. These may include:
●
Relying too heavily upon software
can lead to mistakes.
●
Some AI trading systems could be
vulnerable to hacks.
●
No automated platform is
completely accurate (losses can and will still occur).
● A large volume of automated trades within a short period of time may lead to market instability.
It is still a foregone conclusion that digital
technology will continue exerting a massive influence throughout the online
trading community. Leveraging the latest advancements could very well provide
active investors with a much-needed edge.