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Even if you are vaguely familiar with online trading, you must have come across the term ‘forex’ at least a dozen times. For those who don’t know, forex stands for ‘foreign exchange’. Forex trading involves the buying and selling of different currencies. Efficiency and automation have become the hallmarks of modern-day trading. To make the most of your trading efforts, you should know how to incorporate technology into your trading. And that’s where a forex VPS India plays a vital role.
The key purpose of a forex VPS is to facilitate hassle-free execution of your transactions. It offers a high uptime to let you trade all round the clock as well as strong network connectivity to bring down latency issues (discussed later).
We all know how volatile foreign exchange markets are-currency prices can change within a fraction of a millisecond . A delay between placing a command and the response time of your personal computer often dictates how successful your trade was. When you hit the ‘buy’ or ‘sell’ button, your server must register the command instantly. Otherwise, you stand to lose money.
The delay of a few seconds can cause the price of a currency to shift (rise or fall), making you lose hundreds of dollars in a single trade. Your cumulative losses can go up to thousands of dollars.
If your network is experiencing latency, the price of your currency can shift after you have clicked the ‘buy’ or ‘sell’ button. This shift can occur in either direction in the direction you want or in the opposite direction. More often than not, it happens in the latter direction.
As a result, your trade gets executed at a price different from the one you had requested. In trading lingo, this is called slippage. For instance, if you are buying USD at 1.4040 but on account of a lag, the order gets executed at 1.4045. In this case, there is a ‘negative’ slippage of 5 pips. If you aren’t familiar with trading, this difference may seem insignificant to you, but it can cause you to lose a large sum of money.
Many individuals rely solely on the MT4 servers placed at their homes; their execution time may be as high as 800 ms (milliseconds). They are likely to lose money on the majority of their trades on account of slippage. On the other hand, we have traders who leverage reliable and secure platforms such as forex VPS in India to execute orders. In this scenario, the execution time may get reduced to as low as 5 ms, and so are the chances of slippage.
A VPS works on the principle of virtualization (and forex VPS are no exception). A virtualization software (hypervisor) splits a physical server into smaller ‘virtual’ servers, also called online virtual machines, or virtual private servers (VPS). Each VPS operates in an isolated environment, separate from the rest of the servers, and hosts a single account.
All online virtual machines thus created have a reserved set of resources-processing power, storage, bandwidth-that only the hosted account can access. As a result, they bring in the benefits of superior speed, performance, and reliability. And because a VPS is a virtualized platform, users can easily upgrade resources without disrupting the existing workflows.
To be able to trade without latency, forex traders need a solution that keeps their computers connected to high-speed internet all round the clock. A VPS comes to their rescue in such a scenario. Being a virtualized platform, it does away with hardware issues that impede smooth trading.
When you run an MT4 terminal on your personal computer, issues like power outages, system glitches, or slow internet connection are likely to occur. In the case of a forex VPS in India, everything runs remotely, so unforeseen issues are not likely to arise.
When you have a forex VPS in place, the MT4 runs on the VPS. Any order you place is sent to the remote server and gets executed instantly. As a result, you can trade from any location you want. You no longer need to remain confined to your home or workplace to get your orders placed and executed. All you need is a reliable internet connection and the ability to log into your forex VPS account.
In addition, online virtual machines always keep you connected to your wider trading network. So, even if there is a power failure at your end, automated systems keep you online.
Now that you have a fair idea of what a forex VPS is, let us have a look at why you must use a VPS when trading in foreign exchange.
Many of us still follow the old-school method of trading only through our desktop computers. A forex VPS in India lets you trade from anywhere, anytime. This simply means you can buy or sell currencies using your smartphone while you are commuting or are on a holiday. The only prerequisite is a reliable internet connection. And this increased trading time translates into higher profits in the long run.
A forex VPS enables you to automate your trading, so your trades will continue even when you have a power outage or go offline. There is no need for constant monitoring; your account continues to generate profits even if you aren’t online at any point in time.
Traders that tend to work from the comfort of their homes often fail to realize that their orders may take as much as 500 ms to reach their broker’s main servers placed in New York or London. This lag can cause them to lose hundreds of dollars. By shifting their trading platform on a robust VPS, they can trim down this time to as less as 1-2 ms.
Security is one crucial aspect of trading you cannot afford to overlook. Using a forex VPS in India, you can beef up the security of your trading environment. This happens because virtual machine function in isolation and, therefore, remain immune to hacking and breaches.
In a fast-moving world like forex markets, a lag of a few milliseconds can matter a lot. One way of reducing this lag (aka latency) is by having servers placed physically close to forex exchanges. And that’s what a quality VPS (like the one offered by Go4hosting) offers.
As you are connected to a high-speed network, the chances of a slippage (price difference between the moment you confirm the trade and the moment your trade is completed) are reduced to a significant degree.
In the world of forex trading, an expert advisor (EA) refers to the add-on software used along with an MT4 trading platform that tells you when to trade. The software can be programmed to initiate and execute trades depending on the criteria defined by you. As they run round the clock, EAs create opportunities for trading even when you are offline.
But to use an EA effectively, you need to run your MT4 platform all the time. This can be an issue when you don’t have a steady internet connection. A forex VPS provides an always-on connection with round-the-clock support, so your EA doesn’t miss any trading opportunities.
As forex VPSs are virtual, they let you position yourself anywhere in the world. This is because you have the freedom to choose a VPS that’s geographically close to the broker of your choice, regardless of where the latter is located. So, when used the right way, a forex VPS in India opens avenues to international markets.
In online trading, the stakes are always high as you invest your hard-earned money. So, anything that can impede your ability to trade smoothly, be it power failure, choppy internet connection, or slow computer needs to be taken seriously.
A VPS alleviates such risks, as it is hosted in a secure data center India facility packed with security features that prevent hacking and backup systems that allow for interrupting trading. Your trading platform is powered by a robust, high-performing VPS Hosting that you can easily access through remote software. Such an arrangement results in high reliability.
At Go4hosting, we have top-of-the-line forex VPS plans to provide our traders with an impeccable hosting experience. Endowed with an array of coveted features-ultra-low latency, 99.95% uptime, SSD hosting, and RAID, automated backups-our servers offer everything you need to shine in the forex world. To run several MT4 accounts at once, our online virtual machines let you respond to market fluctuations instantly and get the most of your trading know-how. Get in touch to know more.