How has AI impacted on the Asian forex market?
The impact of AI has already been significant in the forex market, and we should expect this technology to see a higher rate of adoption.
While the use of artificial intelligence (AI) may be limitless, there are some markets where it’s having a far greater impact than others.
Perhaps the most telling example is provided by forex trading, where AI and advanced machine learning has enabled traders to execute a higher volume of predictive orders in real-time while simultaneously minimizing risk and optimize profitability over time.
But how exactly has AI changed forex trading in regions such as Asia, and what benefits does it offer to global traders? Let’s find out!
How has AI Inspired Change in the Forex Market?
According to the statistics, up to 90% of successful forex traders currently use robots to optimise profits and make the most of their capital.
To help them achieve this, AI features a number of advanced technologies, while also boasting the capacity to collate huge amounts of relevant data and present this to traders in real-time.
Having instant access to the right information automatically reduces a trader’s long-term chance of failure, without forcing them to compromise on the number of orders or markets that they pursue on a daily basis.
The ability to gather huge amounts of data is also augmented by AI’s capacity for predictive analytics. Underpinned by machine learning, this technology uses existing trade date and algorithms to accurately predict market shifts and fluctuations.
As predictive analytics have become more sophisticated and accurate, traders have come to rely on them with greater assurance, creating a scenario where they’re happy to deploy AI as a way of performing forecasts and refining their trading strategies.
This continues to translate into superior results, helping traders to recoup more of their capital and minimizes losses even when leveraging derivatives and margin-based investment vehicles such as CFD trading.
This fact is borne out by the numbers, with the predictive analysis performance by AI algorithms significantly outperforming the forecasts of the top analysts and producing results that were only 0.05 away from the actual value.
Can AI Improve Access to the Asian Forex Market?
The impact of AI has already been significant in the forex market, and we should expect this technology to see a higher rate of adoption over the course of the next few years.
As an aside, it may also be said that AI has the potential to make certain markets more accessible, particularly the one in Asia. After all, this market typically operates between the GMT hours of 1 am and 10 am, making it relatively inaccessible to traders based in the UK.
However, the use of AI can accurately monitor and track trends in the Asian market without direct user interaction, while also sourcing data from similarly high-volume markets such as New Zealand, Australia, and Russia.
This data can then be used to execute a high volume of real-time orders, in a way that fundamentally manages risk and optimizes potential profits. This can prove particularly rewarding during the last two hours of the Asian market when it enjoys a crossover with the European trading session and creates new opportunities through increased volatility.
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