A Forex signal is an alert that is delivered by email, text message or through a desktop alert system to place a trade on a foreign currency pair. Once you receive the signal you would then place the trade in your own Forex trading account.
Typically an alert would include:
- The currency pair to trade
- Entry price
- Stop-loss price
- Profit target
- Reasons for the trade
Once your position is in the market you could, if conditions dictate, receive an alert to either close the position or move the stop-loss, based on changing market conditions.
Auto-signals are alerts that are placed automatically in the traders account at the same time as the trade in the signal provider’s account. This can simplify the process but generally means you would not be able to apply a advanced position-sizing model like you could if you were managing each trade yourself.