Firms Rise to the Defence of High Frequency Trading

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As the debate about high frequency trading (HFT) continues to go on and on and as the detractors get more and more vocal, more firms are now coming out to defend the controversial practice.

Harvey Pitt has served as a Commissioner of th...
Harvey Pitt has served as a Commissioner of the U.S. Securities and Exchange Commission (SEC) (Photo credit: Wikipedia)

According to the High Frequency Trading Review (www.highfrequencytradingreview.com), in the last few days, a number of high frequency trading firms have pitched in to the debate, arguing that the benefits that HFT brings to the market far outweigh any negative impact.

Chicago-based Wolverine Trading for example, wrote an open letter to the SEC (Securities and Exchange Commission) in response to the regulator’s call for comments in advance of a planned review of the structure of the US equities markets. In the letter, Wolverine argued the high frequency trading had brought down trading costs for retail investors, as well as offering unprecedented access to information.

Wolverine are not the only firm to jump to the defence of high-frequency trading. Similar responses have been received from market-makers Getco and the Dutch firm IMC, amongst others.

IMC made the point that all market participants, including retail and individual investors, benefit from the increased competition high frequency trading has created amongst proprietary trading firms. Citing greater liquidity and market depth, lower short-term volatility and tighter bid/ask spreads, IMC argued in their submission that investors can now trade at more favorable prices that they have ever had access to in the past.

Lending greater weight to the arguments in favor of high frequency trading, it is not just the HFT firms who are rising to the defense of the practice. Submissions have also been received from alternative exchanges like BATS, who argue that bringing about regulation in an attempt to artificially level the playing field would actually do more harm than good.

The SEC are now evaluating all the responses they have received and will no doubt decide upon a suitable course of action to take.

Forex Alert Software: Should You Purchase or Not?

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In order to become a very good trader in the Foreign Exchange business, you need to be aware of the currency situation at all times.  Tracking changes and movement of the market is very crucial in making decisions whether to buy or sell.  For this reason, software developers have come up with programs that give out Forex alert to its users.  But are they really helpful?  Do they live up to their claims?

Best Money Exchange Rate for Cash
Best Money Exchange Rate for Cash (Photo credit: epSos.de)

First, let’s discuss what Forex alerts software is really all about and what it can actually do.  According to these sites’ ads, their programs can send you a notice if a significant change in the market is happening.  They can do it through your mobile phone or email, making it very convenient if you have other important stuff going on in your life. They also claim that they can give you a heads up when an opportunity to either buy or sell arises, which can only mean they also analyze data for you.  And they apparently do all of this in real time.

Experts in Forex trading say it’s a really cool application but they also warn on relying heavily on programs since such a highly volatile trading environment requires traders to react quickly and technology such as these programs can sometimes falter, which can lead to bigger problems.  They also add that programs can only process data and patterns that developers encode and unforeseen events may lead the AI (artificial intelligence) to give a wrong Forex alert, which can make you lose money big time.

So does this mean ditching the Forex alert software?  Not really.  Some have a stronger sense of belief in modern technology and they are willing to try anything that would make trading less stressful and more accessible to people who are not market savvy.  If anything at all, Forex alert software gives us a peek at what the future holds in Forex trading.  It’s just a matter of time when such technological advancement can be fully harnessed.

Should you get Forex alert?  It really depends on who and what you believe in.  Forex trading is not a computer game that you can reset anytime you want.  It’s real and the money is there.  Your best bet is to try one and see for yourself firsthand if the manufacturers’ claims are valid or they’re just hyping it up to make a quick buck.  If it doesn’t work for you then maybe it will to others.  The main thing really is that you do what is best for your interest and hopefully you’re on your way to a big payday.

Check out the Forex articles and information on The Biz Hunter website prior to investing any funds in the Forex market.

Common Risks Associated With Forex Investments

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Forex investments are extremely risky when it comes to the business of trading in foreign currency. People affected by these risks are foreign investors and particular companies specializing in foreign currency trading. But whatever line of business you are in the risks and potential losses are all the same. So how then do you know of risks threatening your investments? Here are some forex and foreign stock tips to help you make wise investment decisions.

Forex Money for Exchange in Currency Bank
Forex Money for Exchange in Currency Bank (Photo credit: epSos.de)

Generally the strengthening of a currency against other currencies is a major threat to foreign currency trading. Export and tourism industries are always the hardest hit by this scary phenomenon because of their immediate contact with foreign markets. When any currency strengthens a local market can experience a tough time trying to secure export markets because of the high cost of their export goods. Tourism industries can also experience a dip in revenue because tourists find goods expensive in such a country. So at the end of the day the frequency of trading will drop, thereby triggering a drop in value.

The devaluation of a currency is a notable risk, perhaps the deadliest of them all. A currency that is devalued, like the Zimbabwean dollar, immediately plummets in value. The obvious consequence of this is that people who had Forex accounts in their reserves will see their money erode in value. As for exporters their buying power is considerably lessened when it comes to trading on overseas markets.

War, exclusive government policies and coups are political events that can easily prompt a sizable plunging of currency values. The general impact is that of making the country in question unstable for investments. Sometimes governments can order the nationalization of resources and the seizing of foreign owned investments, both of which present themselves as risky economic factors.

The best way to protect your investments from risk is by hedging your Forex trades and ensuring that all the risks you can protect yourself against are mitigated, and that you will stay abreast of all newsworthy events happening within any foreign countries whose currency you are actively trading.  You may be making forex investments to make money, but the first step to that is to not lose money on your investments.

Are Automated Forex Trading Systems Worth A Try?

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When it comes to trading and making money, the Forex Trading Market has become intensely fascinating to individuals that want to earn quick money, through a rewarding new method. Forex gives traders yet another option and opportunity, to bring in an additional income. The Forex market is somewhat unlike the traditional stock market though. With Forex you’re investing in foreign stocks and bonds, in the form of currency. You’re not investing in companies, rather it you’re investing in the value of foreign currency, and the value’s fluctuations.  Note:  The forex market is not like investing in a high yield CD.  You can lose large amounts of money doing this, so be sure you know what you’re doing before you devote much money to any trading strategy.

English: Forex. Aalborg, DK
English: Forex. Aalborg, DK (Photo credit: Wikipedia)

The Potential for Earnings in the Forex Market

Because of these differences, you cannot just jump into the Forex market. You have to have some level of education to understand what you’re doing before you get started. This learning curve can seem very frustrating for some people. This is because there is a lot of money to be made in the Forex market – and this money can be made very quickly.

Getting Started With Forex Without Formal Training

If you don’t have time to learn exactly how to use Forex before you start investing, then the you can purchase a Forex automated forex trading system. With this type of trading system, a machine, or a software program makes your choices for you. These automated systems were designed by acclaimed Forex experts – based on trends and common occurrences in the market. These systems will not provide you with a guaranteed solution for success, because this is unrealistic. There is nothing that can do that. But these automated solutions have been known to earn good money for some investors, at least over the short term.  Of course, nothing lasts forever.  Successful trading systems have a habit of being copied ad nauseum once their secrets become public knowledge.  Once that happens, the automated system tends to stop working.  That’s not to say you can’t get in and out at just the right time, but it is extremely difficult.  Buyer beware.

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Forex Investing in Real Time Groups

Investing in the Forex markets can be highly profitable. Forex offers opportunities unlike other markets that can produce large profits. The traders will learn methods and systems that are repeatable truly do make substantial gains, and these gains can be significant.

Best Money Exchange Rate for Cash
Best Money Exchange Rate for Cash (Photo credit: epSos.de)

when I began trading the advanced currency markets Forex markets I already had experience in trading the S&P 500, stock options, and other fast moving the market’s. Even with his experience, I still needed more.

I highly recommend to anyone who is interested in Forex investing in an to join a trading group. There are many forums and other areas that you can take the time and research and learn who is a member of what group and where. Pay attention to the number of members are in these groups and what they say this will be a great indicator of the best groups to join.

The advantage of trading in a group real-time is absolutely beneficial. Chatting real-time as trades are happening will give you a tremendous advantage in the market. Trade strategies different ideas use an opinion of what’s happening in the market at that moment are constantly being chatted in. Usually the moderator is the expert who is advising the group. However there are typically many great traders within these groups that will offer advice as well.

I have personally traded in groups where there was a least 200 people actively following the moderators trades. As the trades were executed all traders who filed the actual trade would chat to the group the details about their opening position. This was extremely valuable information in many cases because some peoples brokers were delayed in execution, or have other and glaringly obvious problems compared to other brokers. So by trading with a group live, you are able to spot deficiencies with certain brokers and the opening price.  For example: if the moderator executed trade at 104.5. And the other traders are getting in at ranges of 104.3- 104.9 that is common. Every so often there would be a trader using a particular broker whose trade price execution was clearly in favor of that broker. And in many cases it was the same broker and this day trader would be quickly counseled on choosing and other broker.and with Forex saving every little Pip is critical to your success.

Another advantage in trading with groups, is the success of the moderator is tracked. With constant chat information flooding the screen a new daytrader can quickly learn from the experiences of others real-time. As others exit trades, you can do the same as others open new trades, you can also follow.

You can understand the reasoning of why the exits trades and open new positions and the other methods that they have. You can combine methods of multiple people and create your own strategies. It’s limitless on techniques and methods that can be used in Forex. However one thing will never change discipline over oneself is paramount.

Forex 101: Understanding the Hours Of Operation

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Forex 101

This article is about Forex trading. Specifically, forex trading hours. Many people have heard about the 24 hour nature of the markets, but it’s not what you probably think. It’s not some huge NASDAQ type platform where all the currencies are traded 24-hours a day.

Exchange Money Conversion to Foreign Currency
Exchange Money Conversion to Foreign Currency (Photo credit: epSos.de)

If you plan on making money in the Forex market, you need to understand the structure of the market. It’s a good idea to get a good grasp on the basics such as when markets open and close, and the best time trade the markets.

The first thing you need to know is the nature of the markets. Like I said before, there isn’t one big Forex market. There are actually many different markets that all open and close at various times around the globe.

The second thing that you want to know is which are the major markets you want to pay attention to and trade in. This will increase your money making opportunities and it will allow you to focus on fewer strategies to make money in the markets.

The third thing is understanding the best time to trade the major markets. Here’s a quick checklist of the best market matches and times below:

New York / London – 8:00 am – 12:00 noon EST

Sydney / Tokyo – 7:00 pm – 2:00 am EST

London / Tokyo – 3:00 am to 4:00 am EST

These basic match-ups generally have the highest level of activities during those specific hours. And the key to making money is to have plenty of trading opportunities that take advantage of various undervalued currencies.

These are the foundational things you should understand about the nature of the Forex markets before you open a test account. Once you have a better grasp on the basic operating procedures of the markets, it’s a good idea to start developing your forex trading strategy to make money consistently.