How-To For Beginners
Forex is synonym for "foreign currency exchange". The current asset class we are referring to is a currency. "Foreign exchange" is the act of changing one country's currency into another country's currency. The reasons for that are different. Most often this is tourism or commerce. Due to the fact that business is global. We need to transact with other countries in their own particular currency.
The Bretton Woods system allowed currencies to automated float freely against one another. The values of different currencies have varied. That given rise to the need for foreign currency exchange services. These currency services has been taken up by commercial and investment banks on behalf of their clients. On the other hand, technologically revolution and fast banking, created a speculative environment for automated trading one currency against another using the internet. The name of that environment is Forex Market. This is a decentralized market that spans the globe and is considered the largest by trading volume and the most liquid worldwide. Exchange rates automated fluctuate continuously due to the ever changing market forces of supply and demand. Forex traders buy a currency pair if they think the exchange rate will rise and sell it if they think the opposite will happen. The Forex market remains open around the world for 24 hours a day with the exception of weekends.
About 20 years ago, The Internet Revolution, allow retail traders to automated buy, sell and speculation with currency from the comfort of their homes with a click through online brokerage accounts. Nowadays manual forex trading is anachronism. The market has long been under control of automatic traders. This type of trading is also called "Automated Forex Trading", "Forex Auto Trade", "Foreign exchange autotrading", "Algorithmic trading", "Algo Trading" and etc.
Automated forex traders use computer programs to buy or sell a currency pair at a given time. The exact moment is selected based on predefined set of analysis for the market behaviour. The Automated trading platforms also enable traders to mirror or copy the trades of others. A trader can copy signals or mirror complete strategies. Thus enjoying the experience and knowledge of successful automated traders. So the traders have the confidence to engage in trading, as well as the option to trade when there is no available time, sufficient knowledge or experience. The proffesional trades use the advantages of automated trading, because they are lazy and prefer to make money without to watching computer monitors with hours.
In fact, who does not want his bank account to grow while he chill out on the beach?
Starting a successful automated trading is impossible without the computer product, named "Forex VPS". The product allow automated software to take much faster decisions, that humans. It takes away psychological influences and prevents emotional involvement when deciding what should be traded. Instead, it follows a logical and consistent approach based on established parameters. In this set of tutorials we will provide you with detailed instructions of automated forex server. The "Forex VPS" is usefull tool for both simple and complex trading strategies. Possible applications are too many to be dealt with in single article. So In our "Beginners guide", we have tried to cover all the basics and few advanced topics. Continue to read the "NextPointHost knowledgebase". You will understand the everything about automated forex currency trading. How that will help for making money. It is important to know how works all automated technologies, related to your trading. The knowledge will help for Identifying scams. The biggest disadvantage of automated trading systems in the Forex market is that there are a lot of scams. The more you search for a perfect system, the higher the chances of seeing pages that promote cheap virtual servers. These servers are presented as reliable environment for automated trading. Of course that is not true. The other scammers can promise you a lot of resources in case that you pay in advance for 1, 2 or more years. However, there is no guarantee that such a website will continue to exist in the coming years. As final result you can paid a lot of money for automated service which will not exist tomorrow. Be suspicious and examine in details the websites of such "vendors". The scammers copy the content or website structure of real providers. Keep in mind that It is not enough to place physical servers at data center of some large colocation provider as Equinix, TeleHouse or etc. The reliable data center is only one of many additional pieces used for creation of reliable automated end user service. The real companies have bigger and well structured web sites. They usually charges VAT Tax with different rates, according location of the client. They have VAT Number. This number is mandatory for companies with turnover over 10-20 thousand per year. The different local laws, sets a different amount of turnover. You can verify the European Union VAT Numbers at specially created web site by European Commision.
Avoid everything which comes from companies without VAT Registration!
These are fake companies, created for financial scams or newly created brands without reputation. Using their automated services can lead to money loses from the initial purchase. And in case that you are using the advisor on a live account, you could also lose your trading balance.
This puts an end to our introductory tutorial. Enjoy reading of all additional tutorials.