The rise of AI-driven trading has transformed the forex market, bringing both opportunities and challenges for traders. With machine learning algorithms analyzing vast amounts of data in real time, AI can predict trends, execute trades at lightning speed, and reduce human error. One major impact is increased market efficiency. AI trading systems can spot patterns that humans might miss, leading to more accurate price movements. However, this also means higher volatility, as algorithms react instantly to market news, sometimes causing rapid price swings. Another key effect is reduced trading costs. AI automates processes that once required human effort, lowering spreads and improving liquidity. But at the same time, traditional traders may struggle to compete with high-frequency AI trading strategies. As AI continues to evolve, its role in forex trading will only grow. The key for traders is to adapt by leveraging AI-driven insights while managing the risks associated with algorithmic trading. #AITradingAffectsForex