Forex Trading from Zero to Ace http://cobblog.com Forex trading for beginners and experienced traders, thoughts, analisys, articles and forecasts. Sun, 21 Mar 2010 11:43:56 +0000 http://wordpress.org/?v=2.9.1 en hourly 1 Finding the Best Broker for You http://cobblog.com/finding-the-best-forex-broker-for-you/ http://cobblog.com/finding-the-best-forex-broker-for-you/#comments Sun, 21 Mar 2010 11:43:56 +0000 admin http://cobblog.com/?p=54 What Does a Forex Broker Do?

A Forex broker is a person that works for a brokerage and brokers Forex deals for Forex traders. This person would open your Forex account for you and would be your contact person within the brokerage. Each time that you want to trade on Forex your broker would be the person complete the transaction for you.

What Do New Traders Need in a Broker?

If you are a new Forex trader there will be a lot of things that you will need initially from your broker. Your needs will be quite different from someone that has been trading for a long time so speak to potential brokers about the fact that you will require some assistance along the way. You will need advice and direction from your broker. Therefore before you sign any agreements, find out from the broker whether they have time for this and whether they consider it to be part of the service they will provide you.

Ask Potential Brokers for:

1. Training/Coaching
2. Direction on finding information and resources
3. Low spread
It might be difficult for you to fully identify what you might need from your Forex broker if you have never been involved with trading Forex before. That is the reason that we have written this article. Your Forex broker is someone that you will end up trusting and relying on quite deeply as a Forex trader, therefore you must do your best to research and check out any broker that you are considering working with. Although there is no completely foolproof way to choose a broker, there are many things that you can do to minimize the risks involved in finding a broker. For protection, be sure only to choose a broker that is registered with the Commodity Futures Trading Commission.

What Does the Commodity Futures Trading Commission Do?

The Commodity Futures Trading Commission (CFTC) is an independent government agency that regulates the United States’ commodities and futures and options markets. As a Forex trader, the CTFC is an agency that will protect you from manipulation, fraud or any other potentially abusive practices. They cover all issues of corruption related to investing in the major markets.

How are Forex Brokers Paid?

Your Forex broker is not paid a commission per se, but instead they are paid from the spread. In Forex trading, the spread is the difference between the amount that a currency is bought for and the amount that it is sold for. The lower the spread offered by your Forex broker, the better for you in the long run and on every deal that you trade. This is the reason that you should search for a broker that has a low spread when starting out.

Forex Trading Platform Software

No doubt, most of your Forex trading will be conducted through your home computer either using online software or desktop software. In most cases, Forex trading is done online. The applications that people use for online Forex trading are known as Forex Trading Platforms. These are the primary tools that you will use to communicate with your broker and brokerage firm.
Unless you are particularly tech savvy and knowledgeable in Forex, a Trading Platform will most likely take some getting used to. Your broker however should be able to help you with that. You should be able to rely on your broker first to provide you with the software that you will use and also then to help train and get you accustomed to operating the software.
]]> http://cobblog.com/finding-the-best-forex-broker-for-you/feed/ 1 The ABCs of Forex Day Trading http://cobblog.com/the-abcs-of-forex-day-trading/ http://cobblog.com/the-abcs-of-forex-day-trading/#comments Mon, 15 Mar 2010 11:14:28 +0000 admin http://cobblog.com/?p=52 It is safe to say that many more people are involved in day trading and investing in the various markets than at any other time in history. The primary reason for this is the wide range of opportunities that the Internet has made available to anyone that uses it. The Internet basically gives anyone, anywhere in the world the ability to get up to the minute information on their investments whether Forex or other. Forex day trading is becoming increasingly popular as is trading on the Forex market in general.

How Does Forex Day Trading Work?
Forex day trading happens when a trading deal both opens and closes all on the same business day.  An example of this would be, if you were to purchase a currency at 10am on a particular day and were to sell it by 4pm the same day. Generally day trades happen all within the same business day. Day traders usually keep a keen eye on up to the minutes news, data and financial figures all throughout a day when they are trading. They will then take advantage of any extreme changes in currency rates that take place. At times, rises in currency can be quite predictable, at other times day traders are simply speculate or stay alert.
Can Day Trading Last for More than One Day?
If you purchase currency while day trading and realize at the end of the day that you are on to a good thing, you can actually allow that transaction to roll over into another day. Most brokerages will make automatic allowances for this. In most cases when this happens, your account will simply be billed for the extra 24 hour period if you have not closed the deal by the end of the day. Everything will automatically be renewed and the deal will continue for another day. Often this can be allowed to go on for several days.
Day trading for the most part takes place online. The trader needs to have a fairly fast computer (a computer with a lot of memory), with a fast, reliable connection to the Internet. This is of huge importance because you do not want to lose connection in the middle of an important transaction. Therefore if you decide that you would like to be a Forex day trader, invest in good equipment and in a good Internet service provider (ISP).
Establishing a Day Trader Account
Forex day traders, like anyone else wishing to invest in Forex need to have an account with a brokerage that handles Forex. This might the biggest challenge for a new investor. Finding a Forex broker takes a fair amount of time and research. Knowing how you want to trade can help you narrow down your options for a broker. If you already know that your primary way of trading Forex will be as a day trader, then find a Forex broker with an excellent Forex Trading Platform and with a brokerage that is best structured to accommodate day trading and web-based traders.
]]> http://cobblog.com/the-abcs-of-forex-day-trading/feed/ 0 Forex scams to watch out for http://cobblog.com/forex-scams-to-watch-out-for/ http://cobblog.com/forex-scams-to-watch-out-for/#comments Tue, 02 Mar 2010 00:24:57 +0000 admin http://cobblog.com/?p=50 You may have heard a lot of the hype and publicity surround Forex recently. In fact, you may be here right now because of all of the good things that you have heard about the potential for successful investing in Forex. Although Forex has excellent potential for bringing a return on your investment, there are some risks involved. …And with anything that involves money, there is the risk and the potential to be scammed.

The category of people most vulnerable to being scammed while trying to trade Forex, are those people that are relatively new to Forex trading. If you fall within the category of being new to Forex it is important that you make yourself aware of what scam artists are doing, how Forex trading might be mis-represented and of as many potential scams as possible. In fact, you should do everything possible to protect and prevent yourself from falling prey to someone engaging in those activities.

The thing that often makes a scam success is the fact that they are so believable. Most people know that people usually fall for scams because they offer such an irresistible promise of financial gain; they cater to the greed in us. Therefore be wary of offers that sound too good to be true. …Exactly!  They probably are.

Fake Investment Funds

It is common knowledge that most scams entice us by promising massive returns on ridiculously small investments. These are known as High Yield Investment Programs (HYIP). Stay far away from them. Now although the Forex is a market that allows you to invest small amounts of money and to achieve great returns, the key way to avoid an HYIP scam is to invest in Forex using your own account, not someone else’s. Do not allow anyone to convince you to put your money into any fund that wants to invest your money in Forex for you. No matter how large their promises are.  These funds can not deliver on their promises. They generally pay old clients with new clients’ money and create a cyclical pattern that can not be maintained. They usually run out of money and investors are left with nothing. The owners of these funds are usually the only ones to make any profit.

Signal Service Sellers

Beware of sales people that want to sell you a subscription to exclusive Forex data or information. These are often called a Signal Services. They promise inside information that will earn you stacks of money and claim to have information that no-one else knows. Forex is not magic, so do not fall for this scam. Usually Signal Sellers try to convince you to sign up to receive either daily, weekly or at times monthly information. They claim this information will earn you huge returns on Forex and they are bold enough to guarantee it. The reality is that they can not provide you with any information that is any more useful to what is already in the public domain. Do your research yourself and don’t be suckered in by the false promises of a signal service.

Miracle-Working Software

Search engines are overflowing with vendors that claim that their software can trade in Forex for you and make you huge profits. The ads for this software are very enticing and promise massive returns. Remember, scams target our desire for lots of easy money. Surprisingly, some of these software packages are being sold for prices as high as $5,000!  This is ludicrous since the exact same software (except probably with more features) can be found online for free. The only software packages that will trade Forex for you are those that require you to already have knowledge of Forex. You will have to set the preferences based on your experience and understanding of Forex.

There is no quick, miraculous way to big money… not even in Forex. So be wise, be careful and steer clear of Forex deals that simply are not real.
]]> http://cobblog.com/forex-scams-to-watch-out-for/feed/ 1 What is Leveraged Trading? http://cobblog.com/what-is-leveraged-trading/ http://cobblog.com/what-is-leveraged-trading/#comments Thu, 25 Feb 2010 21:15:33 +0000 admin http://cobblog.com/?p=46 You might have heard the term Leveraged Trading since the time that you started trading in Forex. Leverage is one of the best opportunities for making extra money on Forex. It is a method of trading where a percentage or fraction of the money for a deal or transaction is borrowed. You would need a Contract to borrow to use leverage. These contracts are offered at different rates. With Forex trading, leverage rates can be up to a ratio of 100:1 (one hundred to one). A 100:1 ration means that the trader can borrow 100 times more than they risk or put down.

In comparison to other markets, Forex’s leveraged trading rules are fairly liberal. For example with the equities market traders generally have to pay around 50% of the price of the contract. As you can see, the opportunities are not the same. What this means in practical terms, is that a trader can trade or ask a ‘lot’ worth $100,000 even if they only have $1,000 in capital when the leverage ratio is 100:1. The extra $99,000 would be borrowed or leveraged.

The option of leveraged trading is an option that Forex allows that gives those with less capital a change to invest beyond their means. It might be used if a trader does not have the funds in their own account to make the large trade that they want to make, or if a trader did not want to risk their own capital. The benefit of investing more money that you have really just gives Forex traders the potential to make much more money on the Forex market. It should be used with wisdom since the larger your investment, the larger the risk is also.

The reason that Leveraged trading is especially useful in Forex trading is that very often the shift in currency rates is only very subtle. At times, the Foreign Exchange market only sees very slight shifts in currency rates. When a currency rate shifts only slightly when a small investment has been made on it, the return can only be very small. Although it is fine to invest just small amounts of money, a small shift in rates will only give you small returns. By leveraging your trade and investing larger sums of money, investors have a chance to earn larger revenues.

Reading leverage rates is fairly simple. If you have been given a leverage rate, the first number in the ratio is the leverage and the second number is the margin. When you see the ratio 100:1, the number 100 represents the fraction that the lender will pay and the number 1 represents the fraction that the investor will pay.

Even when you are using leveraged trading you can still place a limit on the amount that you are willing to lose. This is done by setting up a Stop Loss rate at the time that you open the deal. This requires you to state the lowest currency rate that you are willing to hold onto. When you have a Stop Loss, the deal will close should the currency fall below your stated limit. This protects you and ensures that if you suffer loss, it can only be up to the amount that you stated you wanted to risk.
]]> http://cobblog.com/what-is-leveraged-trading/feed/ 2 Everything you need to know about Pips and Spreads http://cobblog.com/everything-you-need-to-know-about-pips-and-spreads/ http://cobblog.com/everything-you-need-to-know-about-pips-and-spreads/#comments Sun, 21 Feb 2010 09:35:16 +0000 admin http://cobblog.com/?p=43 Forex trading is exciting, it’s challenging and it has the potential to earn you large sums of revenue.  Now, if you are fairly new to Forex trading, it will not be long before you began to hear the terms ‘Pips’ and ‘Spreads’ thrown around in Forex circles.  For example, when looking for a Forex broker, you will be advised to find a broker with a low spread.   You might also learn that a currency has risen or fallen by a certain number of pips.  These two words are basically used to make it easier to accurately calculate and indicate how much a currency is worth.  Pips and spreads are of importance to both traders and brokers, so it is a good idea to get to grips with what they are as early on as possible in your trading career.
You have probably heard that Forex currency rates fluctuate on a constant basis.  Day and night currencies go up and down, quite quickly sometimes.  This is all part of Forex and it is the characteristic that makes trading Forex a 24 hour a day, 7 day a week endeavor… potentially anyway.  Very often the changes that are seen in currencies are small and subtle.  In fact, rate changes are often so small that they are measured in units that are even smaller than the number one.  Currencies are measured using decimals.  Notice how you usually see currency rates written with a decimal point and then two to four numbers after the decimal point.
Currency rate changes are often so small that they are measured in Pips.  A Pip is an extremely small unit of measurement.  1 Pip basically pans out to be the equivalent of 0.0001.  The smallest possible rate change that can be seen or measured in currencies is the Pip.   Here is an example of pips in a standard currency pair:  USD/EUR is 1.232/1.239.  This figures used in this example have what is known in Forex as a 7-pip spread – they have a spread of 7 pips; the difference between the two figures.
What is a Spread?
The spread is the difference in value between the buy and the sell rate of a currency.  The buy price is at times also called the ‘bid’ and the sell price is also known as the ‘ask’.  The spread is an amount that is set by the market maker.  When you understand Forex at a deeper level, you will learn that it is the market maker that takes the biggest risk in a Forex trade. They make the trade possible and they place that they make their profit is in the spread.   The larger the spread, the more money they make.
There is always a spread or a difference between the buy and sell rates.  New Forex traders often fail to realize that if you purchase a currency and hold it for as little as 5 minutes, and even if it there is no change in the currency rate, that you will still lose money if you sell it.  This is because currencies are never bought and sold at the same price.  Currencies always sell at a lower rate than they are purchased at.
]]> http://cobblog.com/everything-you-need-to-know-about-pips-and-spreads/feed/ 1 Forex Trading and Current Affairs http://cobblog.com/forex-trading-and-current-affairs/ http://cobblog.com/forex-trading-and-current-affairs/#comments Tue, 16 Feb 2010 12:39:56 +0000 admin http://cobblog.com/?p=40 If you have spent time visiting other countries, you will know that the currency for some countries is stronger than others. The Foreign Exchange or Forex is the market where currencies are bought and sold. In fact, many people invest in Forex and make money just through selling currencies for more than they purchased them for.

By experience, you may have noticed that certain currencies are able to maintain very high exchange rates over very long periods of time, while others drop or fluctuate continually.  You may have even asked yourself what the cause behind this is. This article explores just a few of the factors that affect the currencies that you are interested in trading.
A huge variety of factors affect whether a currency rises or falls. Some of these factors can be predicted while others will come completely out of the blue and hit the world by surprise. The fact is that the Foreign Exchange is big business on a worldwide scale. To truly be on top of this market you would have to commit yourself to a lot of daily research. This is necessary to keep yourself up to speed on current affairs and a changing global, political climate that can suddenly affect currency rates.
Political change or upheaval is one of the major factors that can cause a currency to fall. In fact any type of political instability can cause investors to be weary and to cash in any investments in a particular currency. Some countries experience social unrest every time that an election is held or when there is a change in leadership. In instances like this, no-one can ever quite be sure what the outcome will be until some time has passed. Forex investors likewise will often sell a currency out of caution if they see any signs at all of instability in a country.
If at any point, a country begins to experience economic recession, there is the chance that investors will lose faith in their currency, or in investing in their economy for a while. When things like this happen it has a direct effect on the currency rate for that currency. A Forex trader has to keep themselves up to date with current affairs. In addition to this, they have to also keep an eye on the financial headlines. It is important at minimum to have a general understanding of what is happening around the world financially.
Natural disasters cant be predicted and usually take everyone by surprise. They can have catastrophic affects on a society and at times they completely cripple an economy for a temporary period of time. When a natural disaster takes place, investors often pull out of that particular currency as quickly as possible in order to minimize their losses.
Finally, war and conflict create huge financial deficits for societies engaged in them. In addition to this, they are very expensive. Any country embroiled in a war will suffer economic strain. This will often affect the willingness of people to invest in that currency, at least until the conflict is over.
]]> http://cobblog.com/forex-trading-and-current-affairs/feed/ 0 First Steps in Forex Trading http://cobblog.com/first-steps-in-forex-trading/ http://cobblog.com/first-steps-in-forex-trading/#comments Thu, 11 Feb 2010 12:56:42 +0000 admin http://cobblog.com/?p=36 The Foreign Exchange market or Forex is an opportunity for people to earn money by buying and selling currency. The currency you buy can be US Dollars, Great British Pounds, Euros or any other currency from any country around the world. The goal of a Forex trader is to earn money by selling a currency for more (or at a higher rate) than what you bought it for.

If you are interested in getting involved in Forex trading you must familiarize yourself with the industry, at least on a basic level. It is important to understand both the positives and the negatives of trading Forex; both the benefits and the risks of trading Forex. When you trade Forex the currency that you buy is your investment. It is the thing that will either make you money or lose you money. Therefore, it is important for you to find out what causes the fluctuations in rates that prevails in Forex trading. It is based on this information that you will be able to predict the direction that a currency might be headed.
To begin trading you must first find a broker before you can begin to trade on the Forex. If you are new to Forex, finding a Forex broker can be extremely difficult and a bit overwhelming if you don’t have someone to help you. After all, the job of finding a broker involves understanding who to trust and who to run from. Not every broker will be the best broker for you. Even if you don’t know the intricacies of Forex trading, at least you can be armed with the right questions and have the right information to make an informed decision.
It is important to know that small details in the agreement between you and your broker could affect the amount that you make from your trades or the amount that your broker makes from your trades. Granted, your broker has to earn an income but it shouldn’t all be made from you! Right off the bat, you should look for a broker that can give you a low spread and that requires the smallest possible deposit. In today’s market, the best deals that you are likely to find on an initial deposit will fall somewhere between $300 and $500.
For your protection, you should look for a broker that is registered with the Commodities Futures Trading Commission (CFTC). Brokers themselves should be registered as Futures Commission Merchant (FCM). Brokers are not required to register with the CFTC, they do this voluntarily. In my view, this is just one indicator of a broker’s credibility and their respect for accountability. In addition to this, it is important to check the references of brokers. Ask for a list of references and be sure to call and talk with each of the references about the experience they have had with the broker. Better yet, if at all possible, try to get a broker referred to you by a friend, family member or associate. This is definitely one of your best chances of getting honest, accurate information on a Forex broker.
Once you have found a Forex broker, the job of trading Forex will be much easier. Your broker should at minimum set you up with all of the systems necessary to begin to buy and sell currencies. These systems should include their policies on buying and selling currencies, providing you with any software that their brokerage uses, advice and training on successful trading as well as a willingness to set you up with any software and trading platforms that their brokerage uses. You will be able to buy and sell currencies at will once you have an account and an online trading tool.
]]> http://cobblog.com/first-steps-in-forex-trading/feed/ 2 Why Forex Trading is Suddenly Popular http://cobblog.com/why-forex-trading-is-suddenly-popular/ http://cobblog.com/why-forex-trading-is-suddenly-popular/#comments Mon, 08 Feb 2010 23:48:46 +0000 admin http://cobblog.com/?p=32 There has been a sudden rise in the amount of attention being given to the Foreign Exchange and Forex trading as a whole.  This is quite surprising since the Foreign Exchange has functioned as it does for some time now.  Recently though, everywhere that you turn whether online or on the magazine rack at the supermarket, there is an article or book addressing the subject of making a fortune through Forex.

The Foreign Exchange (Forex) has existed for some time.  Traditionally the Foreign Exchange was an exclusive place to trade.  The every day person could not buy and sell currency.  Only very large, major investments were possible on Forex.  Medium size investments were not allowed in Forex and definitely not small investments.  Forex trading was the domain of very large corporations and organizations.

More recently, Forex trading has opened up and shed its exclusivity and it has become open to anyone that wants to buy and sell currency.  These days, investors can get involved in trading with a very low initial investment.  In fact, this is one of the key things that is making Forex so popular all of a sudden.  It is possible for people to make a lot of money with Forex even when they have only laid out a small investment.  Of course, this happens through good research and a fair amount of good fortune.  Forex is popular because there are not many investment options that allow a person to invest small amounts of money and still make a decent profit.

Online Forex trading is another variable that has had a huge impact on the surge in popularity of Forex trading.  As with the other great things that the Internet has provided us, trading Forex online makes Forex trading extremely accessible to everybody and anybody.  Trading is extremely easy when it is done online or through a Forex trading platform. In most cases, from right there in your online console you can gain access to world news and information on the various factors that affect currency rates.  From right within your trading console, you are able to buy and sell any currency that you choose.

The Foreign Exchange is one of the largest trading markets in the world.  Its growth has been extremely rapid when you consider that Foreign Exchange as it exists today only began to be developed during the 1970s.  Up until that time, there was a fixed rate system for currencies set up by the most powerful nations with the highest currency rates.  Around this time though, countries everywhere began to switch to a floating exchange rate. This kept currency rates more up to date and much more accurate.

It is possible to make a rewarding amount of money through Forex.  Of course this does not happen with every investor on every investment and it does not happen by magic.  A good investor is well informed, flexible and very calculating in their investments.  They are able to make decisions based on the highest probability that their investment will make a profit for them.  As you develop your Forex trading account, be sure also to develop your knowledge and understanding of Forex as much as possible.
]]> http://cobblog.com/why-forex-trading-is-suddenly-popular/feed/ 0 The Rise and Fall of Currencies http://cobblog.com/the-rise-and-fall-of-currencies/ http://cobblog.com/the-rise-and-fall-of-currencies/#comments Sun, 07 Feb 2010 23:33:07 +0000 admin http://cobblog.com/?p=30 Forex trading is an exciting way to invest. Traders earn money through buying and selling currency. The aim to sell for more than you bought it for. This simple principle is seen throughout the world of business and investing.

Why Do Currencies Fluctuate?
The Foreign Exchange (Forex) is in operation 24 hours a day, 7 days a week. People are trading in Forex all of the time. The Foreign Exchange is the largest trading market in the world. Trillions of dollars in currency are literally traded every single day on the Foreign Exchange. Each day, as currencies are traded; bought and sold, you will see the rates of currencies continually rising and falling. Currencies from around the world are in a constant state of fluctuation.

How Do Currencies Fluctuate?
Although if you were to go back in the history of currencies, you would find that previously the value of a currency was based on the amount of gold that the country held. The USA and other developed countries made a decision to change this system and to base the value of currency on the gross domestic product of each individual country. This is the system that we still find in use today.

When it comes down to the complex task of deciding the rate for each currencies, demand for that currency is the major deciding factor. Currencies are subject to two types of demand, Transactional Demand and Speculative Demand. Transactional Demand is calculated by the country’s economic growth, the employment rate in the country as well as how quickly money moves through that country’s economy. Speculative Demand is calculated by forecasts related to whether the currency is expected keep the value that It is at. This is assessed by projected, future economic activity, any inflation that might be anticipated and more.

The Foreign Exchange market trades continually and operates non-stop. It is a worldwide market and therefore an hour that might be nighttime in your home country could be the middle of the day somewhere else. Activity is happening all of the time in the world of Forex and rates are rising and falling continually.

Currencies Affect One Another
Currencies all relate to one another at the end of the day. They are compared against one another and they are bought and sold against one another, in what is known as currency pairs, and they are constantly measured against one another. Currency rates are affected by a whole host of factors.

One significant factor that has not yet been mentioned yet that has a large impact on currency rates is interest rates. Every country has their version of a central bank. It is the central bank in each country that sets the interest rates for lending and borrowing. These interest rates also affect the rate at which their currency sells for. It is measured against other currencies using rather complex formulas. Determining currency rates is not an exact science because speculation is involved. Therefore there is risk involved in this process. Carry traders, which can almost be described as middle men, bear the brunt of this risk. There is a chance that they will lose money because of this. At the same time, there is a chance that they will speculate correctly and earn extremely large sums of money because of it.

]]> http://cobblog.com/the-rise-and-fall-of-currencies/feed/ 0 Forex Robots 101 http://cobblog.com/forex-robots-101/ http://cobblog.com/forex-robots-101/#comments Mon, 25 Jan 2010 10:34:19 +0000 admin http://cobblog.com/?p=15 A Forex robot is a software package that is created to trade on the Forex automatically for those that own it.  Forex robots are programmed specifically to analyze the Foreign Exchange market on a constant basis, determine or estimate the direction of a currency and to buy and sell currencies based on the information that they find.  This is all done on autopilot for the person that owns the robot software.  Forex robots usually only need to be fed a few preferences such as a low cap (to limit your losses) and they are able to trade automatically for you.  Programmers of Forex Robots claim that they can make money for you while you sleep.

How do Forex Robots work?
Forex robots work by scanning Forex data and making the most of trading signals that are built into the Forex trading system.  These robots then use the information that they analyze to the advantage of the robot owner.  Forex robots can analyze the fluctuations that take place throughout the day with currencies and are able to calculate the optimal time to buy or sell a currency. 

Although this might all sound like magic, Forex robots don’t actually have a mind of their own.  They trade and make decisions based on the preferences that you enter into the program when you are setting them up.  Your preferences control the bounds and limits of the robots behavior.  Therefore even though Forex robots perform unbelievable tasks, you will need a basic understanding of Forex in order to set them up and get them trading correctly for you.  You will not have to be an advanced Forex trader to use the software but you will at minimum need to understand how to set upper and especially lower limits on trades.  
Benefits of Forex Robots
Trade for you automatically
Able to calculate decisions similar to your own
Can trade for you while you sleep
Can trade at the best moments
Can operate 24 hours a day

The fact that Forex Exchange market is open 24 hours a day and that trading can take place at any hour of the day or night means that the best time to trade could actually be at 4am in the morning or at some other inopportune time.  If this is so, you might always be missing the best opportunities for profit in Forex trading.  Forex robots solve this problem by trading for you at any time day or night based on your preferences and the risk management choices that you enter into the system. 

Risks of Forex Robots
If after reading this article you decide that a Forex robot is the software that you need, there are a few things that you should be aware of and take into consideration before buying one.  First of all, Forex robots are banned by a large majority of Forex brokerages.  If you want to stay within the rules, you will have to ensure that using a Forex robot is within the rules of the Forex brokerage that you work with.  Those that trade using Forex robots against the wishes of their brokerage company run the risk of having their accounts permanently closed or being banned by a brokerage.

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