Northstar Auto Forex Trading

Auto Forex Trading is a trading strategy where Forex buy and sell orders are placed automatically based on an underlying trading system or software.  When a certain set of pre-programed criteria is met, buy or sell orders are triggered and submitted electronically.

There are also a wide range of systems used to generate the buy or sell signals. Most vary with the programed indicators they use to trigger trading.  Typically, the criteria used are more technical in format – in that they focus on price movement and technical indicators.

Retail Forex trading began in 1996 when Internet based companies created retail Forex platforms that provided a quick way for individuals to buy and sell on the Forex spot market.  As early as the 1970s, larger retail traders Continue Reading »

Technorati Tags: auto forex trading, best forex trading software, forex online trading, forex robot, forex trading, forex trading systems

Leverage is expressed as a ratio between the total capital available as compared to actual capital being invested. So, an example of a 2:1 ratio would mean that for every dollar you invest, your broker will loan you another dollar to apply to that trade.  In the Foreign Exchange Market, (commonly known as the Forex), market brokers may offer as much as 200:1, but normally a 100:1 ratio is most common.  A 100:1 ratio means, for every dollar of your money you invest, the broker will lend you $100. The amount of leverage options available are dependent on the type of market your are participating in.  The amount of leverage you use is also dependent on the amount of risk you are willing to assume and are comfortable with.  The higher the ratio, the greater the ability to achieve high profits but the reverse is also true; the higher the amount of leverage you employ, the greater the risk for

Continue Reading »

Technorati Tags: auto forex trading, best forex trading software, forex online trading, forex robot, forex trading, forex trading systems

The foreign exchange market, known as the Forex, is a global market where trading currency pairs on an institutional basis occurs twenty four hours per day, seven days a week.  Retail trading is conducted 24/7, five days a week.  With trading volume over three trillion dollars every day, it is the most liquid market in the world. For a person new to this market, it can be a bit overwhelming, trying to figure out where to focus, when considering committing capital.  But as many experts say, out of confusion comes opportunity!  That is absolutely true as long as you are armed with the right information and education to excel. There are as many Forex trading strategies as there are brokers, but the hands-off Auto Forex Trading strategy is my favorite which we will discuss in great detail in later postings. The goal of Forex traders is to correctly

Continue Reading »

Technorati Tags: auto forex trading, best forex trading software, forex online trading, forex robot, forex trading, forex trading systems

• Proven Tip #1 – Many robots have been created and some are better than others.  You need to determine if the robot you’re interested in can make very accurate predictions.  Once you’ve been able to check the robot’s record you’ll be able to decide if this is the one most likely to make you a profit.  The key is not to try to decide based on the lowest or highest price because performance is what really counts.
• Proven Tip #2 – The software should be easy to install and use if you are to be successful with an auto Forex trading system.  Some find that several software applications took up too much space on their computers – so if you haven’t upgraded in awhile, you might want to be sure the computer matches the minimum specifications required by the software, or Continue Reading »

Technorati Tags: auto forex trading, best forex trading software, forex online trading, forex robot, forex trading, forex trading systems

• Ask Quote or Offer Price is the price at which you can buy the base currency. It is also referred to as the buy or offer price.
• Auto Forex Trading is a style of trading that involves neither human decision making nor involvement, but uses a pre-programmed strategy based on technical or fundamental analysis to automatically execute trades via an Auto Forex Trading program.  There are as many Forex trading strategies as there are brokers, but the hands-off Auto Forex Trading Strategy is my favorite which we will discuss in great detail in later postings.
• Automatic Execution is an order which is executed automatically without dealer intervention or involvement.
• Bid/Ask Spread is the point difference between the bid and offer (ask) price.
• Commission is the fee levied by an institution to undertake a trade on behalf of a customer.
• Counterparty is one of the two parties in a transaction.
• Currency Pair is the two currencies that make up an exchange rate. When one is bought, the other is sold, and vice versa.
• Dealer is an individual or firm that buys and sells assets from their portfolio, acting as a principal or counterpart to a transaction.
• Dealing Desk is a type of broker whom provides pricing, liquidity and execution of trades.  A no-dealing desk broker does not have a dealing desk but instead uses external liquidity providers to provide pricing and liquidity for its clients.
• Exchange Rate is the value of one currency expressed in terms of another.
• Fundamental Analysis is a style of trading that involves analyzing the macroeconomic factors of an economy underpinning the value of a currency and placing trades that support the trader’s long or short-term outlook.
• Leverage generally will be available.  Because when one looks at the differences of currency rates over time one realizes that changes in valuations are typically very small.  Because of that most Forex brokers offer a large amount of leverage to attract traders looking to profit from their activities, typically 100 to 1.  For example, this means one only needs to have $1000 of account value to buy $100,000 of a currency pair for a long trade.  The purpose of leverage is to put one in position to amplify one’s profits – of course the reverse is true – it can also amplify one’s losses.
• Long Position in the foreign exchange is when a currency pair is bought with the intent of selling the position at a higher price to make a profit.
• Lot is the standard size of a Forex transaction.  Forex trading involves buying and selling lots – something like 1K or 10K or 100k. Typically, one standard lot is equal to 100,000 units of the base currency, 10,000 units if it’s a mini, or 1,000 units if it’s a micro.  Brokerage firms will have individual rules in place to determine what they will allow for lot size trading.  Lets take an example of a transaction that has a mini 10K lot size and lets say you buy 8 lots – you will have bought 8 x 10K for a contract size of 80,000 units.
• Manual Execution is an order which is executed by dealer intervention.
• Margin is the money deposit required to open or maintain a position at a brokerage firm.  Margin can be either “free” or “used”.  Used margin is that amount which is being used to maintain an open position, whereas free margin is the amount available to open new positions.  If a trader’s account falls below the minimum amount required to maintain an open position, he will receive a “margin call” requiring him to either add more money into his or her account or to close the open position.
• Market-Maker is a person or firm that provides liquidity making two-sided prices (bids and offers) in the market.
• Pip is the smallest price increment in Forex trading and stands for percentage in point.  Prices are quoted to the fourth decimal point in the Forex market.  For example, if the EUR/USD goes from 1.5000 to 1.5001 it is said to have increased one pip.  If it went from 1.5000 to 1.5100 it will have increase by 100 pips. A pip is just used to describe rate differences.
• Resistance is the price level at which technical analysts note persistent selling of a currency.
• Risk (Foreign Exchange Risk) is the risk that the exchange rate on a foreign currency will move against the position held by an investor such that the value of the investment is reduced.
• Risk Management is the use of financial analysis and trading techniques to reduce and/or control exposure to financial risk.
• Scalping is a style of trading that involves frequent trading seeking small gains over a very short period of time.
• Sell Quote or Bid Price is the price at which you can sell the base currency. It is also referred to as the market maker’s bid price.
• Short Position is a trade where a currency has been sold with the intent of buying back the position at a lower price to make a profit.
• Slippage is the difference between the order price and the executed price, measured in pips. Slippage often occurs in fast moving and volatile markets, or where there is manual execution of trades.
• Spot Forex Market in which currencies are bought or sold for cash and delivered within a two day settlement period.
• Spread is the difference between the sell quote and the buy quote or the bid and offer price. For example, if EUR/USD quotes read 1.3200/03, the spread is the difference between 1.3200 and 1.3203, or 3 pips. In order to break even on a trade, a position must move in the direction of the trade by an amount equal to the spread.
• Stop (loss) Order is an order to buy or sell when a given price is reached or passed to liquidate part or all of an existing position.
• Take Profit Order is a customer’s instructions to buy or sell a currency pair which, when executed, will result in the reduction in the size of the existing position and show a profit on said position.
• Technical Analysis is a style of trading that involves analyzing price charts for technical patterns of behavior.

Technorati Tags: auto forex trading, best forex trading software, forex online trading, forex robot, forex trading, forex trading systems