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A forex trading system is a rules-based approach to trading currencies. Forex trading systems can be automated as they are essentially just algorithms that a trader runs based on the market signals.
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It is worth noting that in the Forex market, instead of buying or selling some individual currencies, the trader traders currency pair. A currency pair is the main trading instrument in the Forex market. As the name suggests it involves two individual currencies. For example, the EUR/USD currency pair is the most frequently traded currency pair.
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