Currency Day Trading System


DEFINITION of 'Currency Day Trading System'

A set of analyses that the forex day trader uses to determine whether to buy or sell a currency pair at any given time. The day trader's currency trading system is usually made up of a number of currency day trading signals, which are based on technical analysis charting tools or fundamental, news-based events.

BREAKING DOWN 'Currency Day Trading System'

Currency day trading systems can be either manual or automated. A manual system involves a trader sitting at the computer screen, looking for signals and interpreting whether to buy or sell. In an automated trading system, the trader "teaches" the software what signals to look for and how to interpret them. It is thought that automated trading takes the detrimental human element of psychology out of trading.

Both automated and manual day trading systems and signals are available for purchase over the internet. It is important to note that there is no such thing as the "holy grail" of trading systems. If the system was a perfect money maker, the seller would not want to share it.

  1. Currency Pair

    The quotation and pricing structure of the currencies traded ...
  2. USD

    In currencies, this is the abbreviation for the U.S. dollar. ...
  3. Base Currency

    The first currency quoted in a currency pair on forex. It is ...
  4. Forex - FX

    The market in which currencies are traded. The forex market is ...
  5. Quote Currency

    The second currency quoted in a currency pair in forex. In a ...
  6. Runoff

    The procedure of printing the end-of-day prices for every stock ...
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