Definition – What does Forex Trading Software mean?
Forex trading software is a computer application that is designed to help forex traders identify trends, place trades and manage positions. Forex brokers often offer forex trading software to help account holders execute trades, but there are many retail software packages to choose from as well. Forex trading can be separated into several different types. These include: Trading Platforms: These are the basic programs that allow traders to manually enter and exit positions, buying and selling various currency pairs.
Technical Analysis Software: Technical analysis software is designed for forex charting. This type of software tracks the historical information on a currency pair and uses set and customizable indicators to alert the user to trend formations.Automated Forex Trading Software (Forex Robots): This type of trading software initiates and manages positions based on an algorithm or a trading strategy that the trader has chosen to use in the forex market. Automated forex trading software is one way that forex traders can avoid having their emotions interfere with their trading strategy.Trading Signal Generators: This type of trading software is one step removed from automated forex trading software. Signal generators track charts like technical analysis software, but they also provide users with suggestions on entry, exit and stop loss points for the position.
ForexTerms explains Forex Trading Software
Forex trading software has become increasing sophisticated over the years. When the original trading platforms came out, many forex traders still had to run separate application to follow charts or identify patterns. Current software packages offer some combination of technical analysis functions, signal generation and trade recommendations on top of the basic position management functions. The automated programs are generally the most sophisticated, but they also tend to cost more and can be quickly replaced by newer versions that cut into the older model’s ability to profit from a recognized trend. A trader can buy his own trading software and customize it to fit his needs. However, many brokers also offer trading software to clients that open accounts. The MetaTrader is one popular platform that many brokers customize and offer to their clients.