The difference between automated trading and manual trading

Markets.Online offers traders an automated trading system as well as the opportunity to trade manually. But what makes them different from one another? Learn more in this article.

What makes automated and manual trading different

Until recently, manual trading was the only trading method available. However, advancement in technology over the last few years has caused a significant increase in the use of automated trading systems.

Manual trading is a trading process whereby human involvement is required to enter and exit a trade. In contrast, automated trading does not require the involvement of a human being. A computer uses a set of programs or an algorithm to enter and exit trades.

There is a never-ending debate over which of the two methods is better. Both have their own pros and cons, the main thing being that a human trader has a brain that a robot or an automated trading system does not. Where a robot can execute decisions based on the scenarios it was programmed for, human can take into consideration things that are going on and process it together before executing or closing a trade.

One of the problems manual traders face is sticking to a plan as there are several factors such as emotions which may intervene, however, in automated or algorithmic trading the robot sticks to the trading plan it was set up for as there are no emotional factors that can intervene.

To err is human but in automated trading, the robot always executes correctly and won’t make a buy order when it should really be selling. Robots also do not get tired compared to humans.

These are just some of the major differences that exist between automated trading and manual trading. At Markets.Online, traders have the choice between both manual trading and automated trading. Both excel in their own way and it up to traders to decide what trading system is more appropriate.

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