Forex Automated Trading

Forex Automated Trading is a way of trading that takes neither human deciding nor participation, but applies a pre-programmed strategy founded on technical or fundamental analysis to mechanically perform trades thru an machine-driven software package programme.

For Example you own a trading account at a broker that calls for a 1% margin deposit for all trades. The actual quote for EUR/USD is 1.9225/28 and you prefer to send a marketplace order to buy one regular lot of hundred thousand Euros at 1.4328, for a total value of US$143,280 (100,000 * $1.4328). The broker asks you to deposit one% of the total, or $1432.80 to start the trade. Concurrently you place a take-profit order at 1.4378, 50 pips above your rate cost. In accepting this trade you anticipate the Euro to beef up against the U.S. dollar.

As you anticipate, the Euro strengthens versus the U.S. dollar and you take your earnings at 1.4378, closing down the trade. While each pip is worth US$10, your total profit for this trade is $500, for a complete return of 38%.