Currency Day Trading System

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Interbank Market

    The financial system and trading of currencies among banks and ...
  2. Authorized Forex Dealer

    Any type of financial institution that has received authorization ...
  3. Forex - FX

    The market in which currencies are traded. The forex market is ...
  4. USD

    In currencies, this is the abbreviation for the U.S. dollar. ...
  5. Runoff

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

    The second currency quoted in a currency pair in forex. In a ...
Related Articles
  1. A Primer On The Forex Market
    Options & Futures

    A Primer On The Forex Market

  2. Forex: Demo Before You Dive In
    Forex Education

    Forex: Demo Before You Dive In

  3. Getting Started In Foreign Exchange ...
    Forex Education

    Getting Started In Foreign Exchange ...

  4. Playing The Gap
    Forex Education

    Playing The Gap

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center