Automated trading reduces volatility in the forex market, traders may be hit

According to Bijie.com, on September 19 (UTC+8), the progress of electronic trading may be suppressing the volatility of the foreign exchange market, making continuous large fluctuations a history. This is the view of some participants at the TradeTech Forex Conference in Barcelona this week, and the growing impact of automation and algorithmic trading is a hot topic. The foreign exchange market has a daily trading volume of $7.5 trillion, but its volatility has dropped to nearly a year-on-year low. Schroeder's foreign exchange trading director Gordon Noonan regards foreign exchange fluctuations after the release of non-farm employment data as evidence of the "crazy" development of electronic trading. In the past, interest rate spreads expanded for a long time, and now they can return to normal within 30 seconds. Flash crashes occurred from time to time a few years ago, but now they are almost never. Nunan even believes that the market may no longer require professional forex traders in the future. In addition, a survey by the London Stock Exchange showed that forex trading companies still prioritize investment in technology this year, and companies tend to rely on machines rather than hiring employees to gain a competitive advantage in an increasingly automated market.