KHUSHI V RANGDHOL
April 9, 2025 18:42
AI is switching to foreign exchange transactions, and algorithms run 70-75%of the transactions. Human traders now focus on strategy and supervision, adapting to the fast -proof market.
Artificial intelligence quietly changes the world of foreign exchange transactions. It started as a niche for quantitative funds and has developed into an essential part of the global currency market. Today, algorithms run most branch foreign exchange transactions, while human traders play a more strategic and supervised role. Behind speed and efficiency is a new market structure.
The algorithm now runs most transactions
According to BIS (International Settlements) banks, the use of algorithms and electronic systems in SPOT Forex transactions has increased rapidly. As of 2022, about 70-75%of major institutions’ spot transactions run through automated platforms. This has been significantly increased only 10 years ago, especially reflecting a wide range of adoption of AI -based trading strategies among banks and non -banks.
The system cuts large orders into small spells to reduce the price slipping and optimize the execution of trading by responding to market signals at a super human speed. Some claims, such as falling 23% or reaching 0.03%, are expelled without verification, but industry research supports general trend. AI is automating many risks inherent in non -efficiency and inherent in manual execution.
Millycho Market and fleeting transactions
Perhaps the most dramatic change is how quickly AI reacts to market news. Certain numbers, such as JP Morgan’s 47mm second reaction time, are not confirmed in the public report, but the high frequency trading system is known to work on a time scale of less than 1/10 seconds. The algorithm now analyzes economic releases and price fluctuations in real time to adjust the location within the moment.
As a result, the average maintenance time of some AI -centered foreign exchange transactions has been reduced to a few seconds. If a human merchant is in charge of position once or for several days, the modern system runs and terminates within Milisho. This high -speed environment provides efficiency and liquidity, but it makes it almost impossible for human traders to compete at the speed of execution.
Merchants evolve without disappearing
Despite the fear that AI will remove jobs, human merchants are useless. Instead, the role has changed. Instead of spending most of the time manually runs manually, the trader now functions like algorithm managers and dangerous engineers. They monitor performance and micro -adjustment parameters and intervene in the market.
Recent trends confirm this evolution. The institution reports that instead of supervising strategies, compliance and automated systems, the trader now consumes one -third of the time for execution. Human expertise is still important even in volatility or non -oil mobility that are better than algorithms.
Global regulators begin
As the influence of AI increases in the transaction, regulators are actively working to ensure transparency and stability. In early 2025, the Hong Kong Securities and Futures Commission introduced a rules that require the company to test the AI -centered model under various conditions and maintain human supervision of automated decision -making.
Similarly, the British financial behavior authorities emphasized the governance and responsibility of algorithm trading, and the European Union’s MIFID III reforms and the upcoming AI law aim to classify the trading algorithm as a “high risk” system. These frameworks do not sacrifice market integrity and encourage innovation, explain, documentation and protection measures.
Human -Ai synergy new era
Since the AI continues to be included in the fabric of foreign exchange transactions, change cannot be denied, but it is not replaced by humans with a machine. Instead, the speed, precision and data processing power of AI is integrated with human judgment, supervision and strategy. The most competitive company is a company that understands this synergy effect. While maintaining a firm grip for governance, risks and adaptability, algorithm placement algorithms are placed according to scale. This quiet revolution is not gorgeous, but the market is reduced from the way the deal is executed to the way the trader itself is in operation in the era of intelligent automation.
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