What is Forex Trading Software?
It is important that all those investors who are still inexperienced be clear that the electronic platforms are designed to help and connect with the world of the foreign exchange market. Forex software is a very useful tool that has the ability to make everything easier, but this is not the only thing that has made this currency market gained the popularity it has today. If you do not possess any kind of knowledge about Forex, currency trading software will not help you.
All those investors interested in obtaining capital that generates in them a number of profits, and also to be able to develop their Forex strategies will be able to benefit from the trading software that they have. A large number of platforms for financial purposes today, are also in the ability to open, close and manage the various positions in which the market is located. All platforms have similar capabilities when talking about quotation, technical analysis and graphics. Next, two important points will be touched upon by the merchant when he is searching for the best Forex trading software:
The main purpose of a commercial platform, which is nothing more than an online Forex trading software, is to create a connection between the operator and the market. Regarding the operations made in Forex, it is the trading platform that connects the operator with its respective intermediary.
On the other hand, if the intermediary belongs to ECN or STP, the commercial terminal will proceed to connect the operator with the intermediary and later, this one with the market.
These abbreviations can be found very often in the pages of intermediaries, but these are not directly dependent on the currency trading software, however, it is important that the merchant has knowledge of what they mean.
The acronym ECN has as concept an electronic communication network. This network makes available to the user a variety of types of financial trade made externally of the classic stock exchanges. The main purpose of ECN networks is to annul the intermediary and connect the merchant and brokers directly with a network that does not have vertical dependency or subordination. What mainly characterizes these networks, is that all orders generated and subsequently sent are attached to a kind of book where they all arrive in a unified way and this works as a database, later, each of the orders can be compensated with the exchanges that are available, totally or partially, all through the order matching system that has this network.
Now, STP means direct processing, in which orders are processed automatically. In other words, these acronyms refer to the fact that brokers have the responsibility of being a supplier that discreetly connects the merchant with the market.
Both ECN and the acronym STP mean that the intermediary will not intervene with the exchanges, but that the intermarket will observe the orders as they are sent. When this is employed this way, Forex currency trading software is merely a connection between the merchant and the market.