Electronic Currency Trading

DEFINITION of 'Electronic Currency Trading'

A method of trading currencies through an online brokerage account. Electronic currency trading involves converting base currency to a foreign currency at the market exchange rates through an online brokerage account.

BREAKING DOWN 'Electronic Currency Trading'

Electronic currency traders use analysis based on technical and fundamental indicators to help them forecast the movement of the currency pair being traded. Because currency trading by this method is wholly electronic, execution speeds are extremely fast, allowing the trader to quickly buy and sell currencies to cut losses and take profits at a moment's notice.