Currency Trading Software

Written by Jacey Harmon
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Trading software provided by Forex brokers/dealers allows individuals the opportunity to self-trade at home. It is best to have a reasonably fast and reliable computer if you are going to use trading software. It is also recommended to have a high speed internet connection as trades will be transmitted over the Web. The last thing you want is for your computer or internet connection to freeze when you have thousands of dollars in the market.

Key Components of Trading Software

The main function of trading software is to facilitate trades. There are all sorts of "bells and whistles" involved with most trading software programs but basically they are used to place trades. Because of this, order placement and account management are key components to a quality trading program. Order placement should be easy to understand and completed in a few clicks of the mouse. Account balances and position tracking will help you monitor positions and manage profit/loss targets.

Without real time quotes you won't be able to place any trades. Real time quotes will give an exact picture of what the market is doing at that point in time. If you don't have real time quotes you will be behind the market and miss trades. Ideally, a trading software program will allow you to receive quotes from multiple currency pairs. By monitoring more than one pair you can take advantage of multiple trading opportunities.

Technical analysis is useful for identifying entry and exit points in the Forex market. Live real time charts are also useful in gauging the session's activity. With short term intraday charts you can identify short term support or resistance levels. A quality software program, if offered through a broker/dealer, will provide real time charts.


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