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FXClub.com Tip: Foreign exchange market signals are used by forex brokers and independent traders to choose points of entry and exit into the market as well as points at which the trader or dealer buys and sells in the foreign exchange market. Trading systems differ between forex brokers, dealers, and traders. Most foreign exchange market signals are based on the technical analysis and mathematics that graphically chart histories and predictions about the value of a monetary unit. Once a certain parameter of value is met, a market signal to buy or sell is sent to dealers and traders. A foreign exchange signal can be delivered via electronic methods such as the telephone, instant messaging to a mobile phone, or e-mail.
When the individual receives the forex buy/sell signal, it is up to them to buy or sell. This is the same idea used in traditional stock market trading. The main difference is that there is no definitive time that signals are sent out or that one can buy/sell. The foreign exchange market is global and therefore runs around the clock. This means that the foreign exchange signals are constantly generated and sent out, also.
There are many automated foreign exchange signals in the forex market. These are often software generated based on technical analysis and mathematics. It is important to do your research to find a reliable automated signal system. The facility offering the foreign exchange signals should have a proven track record and be ethical.
It is also important not to simply ‘jump in' to any signal trading automated system, especially if the offer sounds too good to be true or you cannot find reliable evidence of the company's history. This prevents fraud, as some of the more expensive automated signal systems charge in excess of $500 for using the automated foreign exchange systems.