Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
What autotrading is
Market terminology

Autotrading: pros and cons of special programs for trade

23.08.2022
2 min read

How autotrading helps newcomers to master exchange trading

Autotrading implies the use of special programs or terminals for trading operations. Such systems automate most of the processes, greatly facilitating the activity of the trader. In this case, the program takes over the analysis of the situation, opening, and closing transactions.
There are two variants of autotrading systems: special terminals and digital assistants for automated trading. Both of them allow users to adjust the functionality for opening deals.
The most popular are Expert Advisors. They represent a special script that is installed on the trader’s terminal. The choice of such systems is huge and includes both paid and free options. You need to buy terminals separately; in addition, you pay extra for the signal to open the deal.
Autotrading makes it possible to entrust the program with all important operations. The program advisor analyzes the situation on the market and on the basis of the received information makes a decision on order opening. If all the conditions set by the system are fulfilled, then the deal is closed or the stop loss is activated. There are advanced options when assistants can set certain parameters without human intervention.autotradingAnother advantage of automated programs is that their use does not require special knowledge. They are excellent for a beginner who still poorly understands the principles of technical or fundamental analysis. It is enough to have basic knowledge about the mechanisms of interaction at the exchange, and the rest can be entrusted to the program.
Despite the advantages, autotrading has its disadvantages. The first of them is the additional expenses. You must be prepared for the fact that a system with a large number of functions will cost approximately $500. In addition, you must understand that both people and machines are not immune to mistakes. Even the most expensive and advanced program can fail and misjudge trends in the market. Also, programs can have a number of conditions, which will not suit a trader, for example, a certain amount of deposit or limited currency pairs.
Note that many brokerage companies are skeptical of autotrading and prohibit the use of such programs on their servers. Violation of this condition can cost money or be fraught with contract termination.
Autotrading is a great solution, but you should not expect a miracle from the program. It is better to combine the use of programs with your own analysis and control of transactions. Such symbiosis allows the trader to understand better the tendencies in the exchange, and at the same time, at necessary moments to have a safety net from the program and its automated analysis.
In addition, you should understand that all of the major market players, in addition to mathematics, rely on their intuition. And in many cases, it was the latter that told them the right decision.

Tags: Market terminology
0
Previous Post Chip maker Broadcom buys VMware for $61 billion Next Post Tencent: the foundation story of one of the biggest tech giants

You Might Also Like

trade risk
Market terminology
Trade risk for companies: types and ways to reduce damage
15.09.2020
trust management in the securities market
Market terminology
Trust management in the securities market: types and advantages
19.11.2021
Basis point description
Market terminology
Basis point: an overview of one of the basic concepts of finance
24.09.2022
offset
Market terminology
What offset means: application of the mechanism to stock exchange activity
22.12.2022
Special purpose acquisition company
Market terminology
Special purpose acquisition company or SPAC: features of a shell company
09.03.2022
the price channel
Market terminology
How to build a price channel: a description of the tool
14.07.2022

Popular Posts

  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Press Secretary
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Press Secretary
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Press Secretary
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Press Secretary
16.05.2020

Popular Posts

  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics