The Forex market provides every trader with an opportunity to make as much money as possible buying and selling currencies at any time of the day or night. You enjoy watching the charts and jumping on profitable trades. But you do miss great trades sometimes because you cannot watch the market all day and all night. You don’t have to lose remarkable trading opportunities when away or asleep. With a Virtual Private Server (VPS), you are able to run your trading strategies 24/7 and make the best out of this highly lucrative market.
What is a Virtual Private Server (VPS)?
A Forex VPS, also known as a virtual machine, is a remote server a trader can use to host automated Forex strategies. Using a VPS is similar to renting a computer near your broker’s server. It reduces latency and ensures that your strategies are hosted 24/7.
How a Forex VPS works
A VPS works under the premise of leveraging the added benefits of sharing a physical location with a data center while offering the end user a service that is manageable and affordable. The setup of a VPS utilizes virtualization technologies to partition (or virtualize) physical hosts into small sub-units. Each sub-unit runs an isolated operating system.
To understand the functioning of a Forex VPS, consider two scenarios. One case is where a trader’s computer has to be connected to the internet for the trading software to run and trade. Usually, an EA (expert advisor) that’s attached to the trader’s computer needs an internet connection to trade. This limits the trader’s ability to take trading opportunities. The computers must be turned on and internet-enabled.
In the other scenario, a Forex VPS is used. The VPS is configured to relay Forex-related data and orders to the trading station’s server. It creates a direct and continuous internet connection thus bypassing the limitation above. A trader is just required to host the expert advisor of the VPS. A VPS works best when its data centers and broker’s servers are located as close as possible. This explains why institutional traders have their trading stations hosted in the same location as exchanges and brokerages.
Advantages of a VPS
* If you trade off alerts, a VPS ensures that all alerts are sent your way as soon as they are triggered.
* Using a VPS saves your computer’s disk space since you only need to download a shortcut to your VPS.
* While away from your personal computer, you can simply login to your VPS account and access your trading resources.
Do you really need a Forex VPS?
Forex VPSs are useful to traders of all levels of expertise – from beginners to veterans. If you can relate with one or several of the following scenarios then you need to consider using a Forex VPS:
* You need to test or run your EAs in a stable environment to maximize returns from your trading system.
* Your trading system or software requires ultra-low latency connection with the broker
* You frequently move away from your computer/trading station
* You want to improve the execution of trading orders by bringing your trading machine closer to your broker’s server.
Where do I get a VPS?
Admiral Markets recommends that every prudent trader should have a VPS that provides fast access, offers technical support, and isolates the automated trading software for security purposes. You can get a VPS from your broker. Some Forex brokers offer VPS for free while other brokers provide one at an affordable cost. There are many other providers online but you need to do your research to make sure you find one that is reliable and affordable. A great VPS provider’s internet power and connection is up 99.9% of the time. This ensures that your automated strategies don’t miss a trade. You also need the VPS to be accessible from any location as long as there is internet connectivity.
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