DEFINITION of 'Manual Trader'

A trader who manually enters trades into a trading system without using computerized algorithms that enable automated order entry. In the frenetic world of trading, manual traders may be at a disadvantage compared to traders who use considerable computing power to exploit pricing anomalies in the markets. Also, manual traders may be more susceptible to trading on emotion compared to a trader relying strictly on a trading program.

BREAKING DOWN 'Manual Trader'

Entering trades or orders manually into a trading system also increases the risk of incorrect or erroneous order entry, which can be fraught with disastrous consequences if the error is large. Currency traders therefore increasingly use automated trading systems that enable them to place orders and execute trades efficiently through an application programming interface (API).

RELATED TERMS
  1. Manual Execution

    A method of trading with the help of a dealer or broker, versus ...
  2. Currency Day Trading System

    A currency day trading system is a set of analyses that a forex ...
  3. Manual Excess

    Manual excess refers to the premium charged for insurance coverage ...
  4. Automated Forex Trading

    Automated forex trading is a method of trading foreign currencies ...
  5. Day Order

    An order to buy or sell a security that automatically expires ...
  6. Forex Trading Robot

    A forex trading robot is an automated software program that helps ...
Related Articles
  1. Personal Finance

    A day in the life of a day trader

    Day trading has many advantages, and while we often hear about these perks, it's important to realize that day trading is hard work.
  2. Trading

    Trading Systems Coding

    Automate your trades by translating your strategy into a language your computer can implement in this hands-free approach to investing.
  3. Trading

    Introduction to Stock Trader Types

    What type of stock trader are you?
  4. Trading

    Basics Of Algorithmic Trading

    Algorithmic trading is the process of using computers for placing trades in order to generate profits at a speed and frequency that are beyond a person’s capability.
  5. Trading

    Day Trading: An Introduction

    This article takes an objective look at day trading, who does it, and how it is done.
RELATED FAQS
  1. The difference between a market order and limit order

    Market orders execute a trade to buy or sell immediately at the best available price. A limit order only trades when the ... Read Answer >>
  2. Is there a buy-and-hold strategy in forex, or is the only way to make money by trading?

    Typically there are different ways to trade in most markets. Traders have been classified into three groups, primarily based ... Read Answer >>
  3. Why do limit orders cost more than market orders?

    Learn the difference between a market order and a limit order, and why a trader placing a limit order pays higher fees than ... Read Answer >>
Hot Definitions
  1. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  2. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
  3. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
  4. Relative Strength Index - RSI

    Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent ...
  5. Dividend

    A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
  6. Inventory Turnover

    Inventory turnover is a ratio showing how many times a company has sold and replaces inventory over a period.
Trading Center