What Is Autotrade
What Is Autotrade?
Technology continues to enhance our way of life in many convenient and unexpected ways. Just 50 years ago, for example, everyone believed that what people really needed in the future were flying cars and colonies on the moon or Mars. In reality, however, the rise of the computer—and eventually the Internet—didn’t actually herald a new space age.
Instead, what we got was an information age, where people of today, more than at any other point in human history, have access to uncountable amounts of information. We can track friends through global positioning systems, take phone calls, photos or even video footage through our phone. We can look up anything we like on a constantly evolving online encyclopedia, or keep in touch with friends and family through social media. Computers and the Internet now touch and affect almost every aspect of our lives, so it shouldn’t be a surprise to anyone that this technology would work its way into the financial sphere as well.
Today, computers are an essential part of business, but there’s one particular piece of technology that some people swear by and others stay away from. It’s called Autotrade, and for a certain type of trader, it offers a unique opportunity. So what is it and who is it for?
Timing Always Matters
There’s the old saying that “timing is everything,” and in the business world, this saying can mean the difference between a strategic, incredibly profitable trade, and a lost opportunity. Most of business is about making a transaction within the right window of timing and opportunity. Even with traditional trading, if you bought gold, or stock in a company, you had to wait until the demand for those assets rose. Once it did, you sold the assets you had in your possession at a higher price and that was your profits were made.
Once things moved over to the light-speed world of computers and computer networks like the Internet, the importance of timing jumped another order of magnitude. Trades could be made much faster, and trading itself didn’t have to stop at the end of a business day in North America, as it could continue for the business day in Europe, then Asia. With computers, people no longer had to rely on brokers that had access to a trading floor in New York or London, they could use their own software to make their own trades.
This means that now, more than ever, there is always trading going on somewhere in the world. Some good deal is happening, some currency is hitting an ideal price point, or experiencing a drop or spike that could benefit a trader looking for just such market conditions. Both binary options and Forex trading are speculative trades that don’t rely on buying or selling actual assets, so much as predicting the price movements of different assets. For these types of traders, any trade occurring anywhere in the world has the potential to be profitable if the market is moving. The trick is to be there to make the trade, which is where Autotrade comes in.
Strike While The Iron Is Hot
Because both binary options and Forex trading are about making the correct prediction on price movements within a specified trading period, the timing involved is critical. When major announcements are made about a corporation that could affect the stock value for good or bad, being able to act quickly upon hearing that news is important. In a different way, Forex trading never actually stops, as, once the trading day in one part of the world comes to a close for the evening, a new trading day is beginning in another region. So even if a not particularly notable trading period occurred with the US dollar and Euro in Europe, things might play out differently in the Asian market once the Hong Kong and Tokyo stock markets open.
Both binary options and Forex trading can be very appealing—and very challenging—in this sense, because the opportunities for a good trade can come at any time, but being able to respond quickly is critical. In the case of binary options trading, sometimes the difference between a profitable trade and a loss can be measured in a difference of 60 seconds.
It’s There When You Can’t Be
Autotrade is one way to get around this, and it is made possible only by the software related nature of Forex and binary options trading. Not every piece of trading software is capable of this, but in some cases, a trader may be able to use an autotrade function that lets the software carry out trades, even when the trader isn’t there.
The reason for this is very simple. Both Forex and binary options trading rely on price movements, either upwards or downwards. Because of this, it is possible for an autorade to occur, simply by programming the trading software to monitor a chosen market for a preferred set of market conditions. When those conditions are reached, the autotrade automatically occurs according to the preprogrammed wishes of the trader.
So, for example, if a binary options trader with an interest in Forex trading hears about a tsunami that devastates a good portion of the Asian coastline in the middle of the day in North America, that means that trading is closed in Asia, but there are sure to be ramifications in the Forex market once trading opens. This particular trader may not be available—or awake—to trade in Asia when the market finally starts, but with autotrade, it’s possible to set in advance some very specific conditions for making a trade once conditions are right.
Autotrade, it should be noted, is not artificial intelligence. This can only trade on your behalf, under the conditions you lay out. If you’re not comfortable with letting software do your trades, or don’t yet have the confidence to be able to decide what conditions best constitute the trade you want to make, you should not be using this type of functionality. Only when you really understand how the markets work and what you want to get out of them can you take advantage of the autotrade function for maximum effect.