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How Technology Has Changed The Trajectory Of Forex Trading?

Gone are the days when the forex market was only accessible to those who were experts in using complex technology as the traders had to spend long hours sitting in front of a desktop computer. Technology is still the most important component in the realm of forex trading but with the advancement in technology, the currency market has become an easily accessible place to all as you just need to have some basic level skills to use trading technology. If you don’t have time to trade using a desktop system, you can just use a simple smartphone with an internet connection and trade on the go.

The innovative trading solutions have taken us to the era of trading automation where robots can trade on your behalf. Artificial Intelligence and Machine Learning are truly changing the trajectory of forex trading making it bigger and better than ever. But the application of technology is not just limited to these as even manual traders can find powerful tools that can enhance their skills leading to better results.

In this blog, I will be talking about some of the most simple yet essential forex trading tools that you can use to simplify the trading process with the help of advanced technology.

Table of Contents

Role Of Trading Calculators In Forex Trading

Everyone knows about the amount of calculations that you have to perform to make sound trading decisions and execute your strategy with perfection. Precision is essential for getting desired results at the end of the trading process and you must be able to make calculated moves at the right time before the opportunity slips away like sand. The forex market is known for its frequent fluctuations and the market situations can turn around so fast that many traders struggle to match the speed.

Manually calculating the trade-related metrics can be a tiring task as the exchange rates are always changing and even a minor inaccuracy can lead to costly mistakes in live trading when real money is at stake. This is where trading tools can come to the rescue. Tools like trading calculators are highly beneficial in calculating complex numbers in seconds to ensure that traders enter and exit positions on time.

The forex trading calculators are online tools that work using automated technology providing accurate values in any currency that you want by applying real-time conversion rates. Different types of trading calculators are offered by forex brokers and trading platforms for free, allowing all the platform users to save their time and effort. By using such simple automated tools, you can not only make informed decisions in time but also focus more on other aspects of trading that require manual intervention.

What calculations can be done with the help of trading calculators?

Currency conversions – Conversion rates of currencies are the core concept that applies to all transactions and trading activities that take place in the forex market. Hence, you will often have to find how much of one currency will be needed for placing a trade in another currency. Currency converters or currency calculators are the most basic types of trading calculators that you can rely on for converting an amount in one currency to another with ease. Online currency calculators apply real-time exchange rates to give accurate results right away, helping you to plan your trades better.

Profit calculations – In order to execute successful trades, you will have to plan the trades in advance by deciding the favourable entry and exit points based on your target profit. Once you decide on the price points for opening and closing your trade positions, you will have to check if it will be the best price level for earning enough profit from the trade. For this, you will have to consider the potential profits of the trade and that can be found by using a forex profit calculator. Along with the prices, you should also specify the lot size, and currency pair in the profit calculator. It will tell you the amount of profits you will be making if you win the trade in your base currency.

Pip calculations – Pip is the standard unit that is used to measure the currency price movements in the forex market. Hence, pip calculations are essential to keep track of price fluctuations and finalise the trading plan based on the extent to which you want the prices to move by counting the number of pips. The actual profit or loss depends on the value of pips you earned or lost in the trade and a forex pip calculator can be used to find pip value in your preferred currency.

Margin calculations – Margin calculations are very important in trading as having enough account balance is essential to keep your trades running without any interruption. With the help of a margin calculator, you can find the margin requirement easily by entering the details like the leverage ratio chosen, trade size in lots and currency pair you are trading. Then the margin calculator will determine the amount of money that has to be kept in the trading account for a specific trade in your account’s base currency.

Besides this, you can also find forex calculators for determining other key metrics like position size, trading cost in the form of spreads or commission and more.

Rising Popularity Of Forex Trading Apps

There are many reasons behind the popularity of forex trading apps. First of all, smartphones were no longer a luxury item like in the introductory stage and the ordinary population could easily find affordable smartphones that can be used for many complex tasks including trading. Since the number of smartphone users is constantly rising each passing year, popular trading platforms came up with the idea of finding new users by offering mobile trading apps while also providing a convenient option to existing users who are actively trading on the desktop version of their platforms.

The trading experience on these advanced trading apps is just as good as the desktop version. The app developers keep bringing new updates to offer a superior user experience to all. You just need to choose a reliable broker who offers both desktop and mobile app versions of your preferred trading platform and then download it from their website. You can use your existing account or open a new one on the trading app by using the login credentials provided by your broker.

Bottom Line

In the end, technology in the world of forex trading is still in the development phase even though we have come a long way already. Online trading was not something that an ordinary person could think about in the past but now you can easily get into trading from the comfort of your own home or use a trading app on your smartphone while you are travelling. Automated trading systems and innovative solutions like copy trading are gaining a lot of popularity as they can empower all types of traders irrespective of their knowledge and skill level. So, embrace the technology and use it well.

Intellectual Insider

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