What is a forex robot?

A forex robot is a piece of software that analyzes the market based on settings entered by the user. A forex robot makes automated trades that can be carried out even as you sleep. Forex robots are a good way to trade a mechanical system that requires no human evaluation.

What is an Expert Advisor?

An Expert Advisor is a piece of software written specifically for the MetaTrader Platform. An Expert Advisor can just advise traders which trades to make or can be programmed to automatically execute the trades on a live account.
Expert Advisors are very flexible pieces of software that can take any information into account that is available on the metatrader platform. They are written in their own proprietary programming language called MetaQuotes Language Version 4.

What is Forex?

Foreign exchange market

From Wikipedia, the free encyclopedia

"Forex" redirects here. For the football club, see FC Forex Braşov.

Foreign exchange
Exchange rates Currency band Exchange rate Exchange rate regime Exchange rate flexibility Dollarization Fixed exchange rate Floating exchange rate Linked exchange rate Managed float regime
Markets Foreign exchange market Futures exchange Retail foreign exchange
Assets Currency Currency future Non-deliverable forward Foreign exchange swap Currency swap Foreign exchange option
Historical agreements Bretton Woods Conference Smithsonian Agreement Plaza Accord Louvre Accord
See also Bureau de change / currency exchange (office) Hard currency

The foreign exchange market (forex, FX, or currency market) is a global, worldwide-decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.^[1]
The foreign exchange market assists international trade and investment, by enabling currency conversion. For example, it permits a business in the United States to import goods from the United Kingdom and pay pound sterling, even though its income is in United States dollars. It also supports direct speculation in the value of currencies, and the carry trade, speculation on the change in interest rates in two currencies.^[2]
In a typical foreign exchange transaction, a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market began forming during the 1970s after three decades of government restrictions on foreign exchange transactions (the Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states after World War II), when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.
The foreign exchange market is unique because of

• its huge trading volume representing the largest asset class in the world leading to high liquidity;
• its geographical dispersion;
• its continuous operation: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday;
• the variety of factors that affect exchange rates;
• the low margins of relative profit compared with other markets of fixed income; and
• the use of leverage to enhance profit and loss margins and with respect to account size.

As such, it has been referred to as the market closest to the ideal of perfect competition, notwithstanding currency intervention by central banks. According to the Bank for International Settlements,^[3] as of April 2010, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20% over the $3.21 trillion daily volume as of April 2007. Some firms specializing on foreign exchange market had put the average daily turnover in excess of US$4 trillion.^[4]
The $3.98 trillion break-down is as follows:

• $1.490 trillion in spot transactions
• $475 billion in outright forwards
• $1.765 trillion in foreign exchange swaps
• $43 billion currency swaps
• $207 billion in options and other products

What is a Forex Broker?

A Forex broker is middle man that matches up buyers and sellers for forex transactions. There are are several types of forex brokers, but the main job is the same, give buyers and sellers access to the forex trading market.

What is MetaTrader

MetaTrader is an independent trading platform that was developed for trading forex, options, and futures.

MetaTrader is made by the MetaQuotes company and it was created in 2002. MetaTrader was one of the first truly programmable trading platforms that came complete with its own programming language.

MetaTrader is a software platform that is independent of the forex broker. The brokers that support using the metatrader platform do package their own versions, but the back end software is maintained by the MetaQuotes Software Corporation.

The metatrader platform is most well known for it's diverse technical analysis ability and the ability to run Forex Robots and Expert Advisors.

What is a take profit order?

A take profit order is an order that closes your trade once it reaches a certain level of profit.
When your take profit order is hit on a trade, the trade is closed at the current market value.
Take profit orders are also sometimes referred to as limit orders.

What is a stop loss?

A stop loss is an order that closes out your existing trade in order to limit losses.
Stop losses are literally used to stop the loss of your trading capital. When your stop loss order is hit on a trade, the trade is closed at the current market value.