ForexGen | Latest U.S Dollar News…..

With ForexGen News Center The British pound depreciated vis--vis the U.S. dollar today as cable tested bids around the US$ 1.8235 level and was capped around the $1.8340 level. Cable reached its lowest level since July 2006. ForexGen platform features Data released in the U.K.Also ForexGen News Center today saw July Land Registry house prices fall 2% y/y while GfK August consumer confidence rose to -36 from -39 in July Additionally, IRS pay deals picked up 3.5% in the three months to July. ForexGen Services Cable bids are cited around the $1.8015 level. The euro moved higher vis--vis the British pound as the single currency tested offers around the ₤0.8065 level and was supported ForexGen platform features around the ₤0.8030 level. Download ForexGen Platform

Forex Trade Sizes with ForexGen

FOREX currencies are traded in much smaller divisions than cash. Whereas the smallest division in US cash is the penny ($0.01), US currency can be traded on the FOREX in divisions of $0.0001. This smallest division is called the pip (short for Price Interest Point – sometimes just called 'points'). Since currencies are traded in large lots of (say) $100,000 - small movements in value can generate substantial profits and losses. In a lot of US$100,000 one pip is worth $10 so an increase in 40 pips (4/10 of one cent) can generate a profit or loss of $400. Currencies are traded in lots of various sizes. The standard lot is 100,000 units of the base currency. A unit is the currency name e.g. one unit of US dollars is the dollar. So a standard lot of US currency is worth $100,000. FOREX trades can have lots of various sizes - a mini lot is 10,000 units, but the most trades are done using standard lots. Various currencies have different sized pips. The US dollar is expressed in pips of 0.0001 while the Japanese yen is expressed in pips of 0.01. The value of a pip depends on the size of a lot and the currency pair traded. Currency pairs with USD as the quote (second) currency (e.g. CAD/USD) always have a pip value of $10 per standard lot or $1 per mini lot. A pip value calculator can be used to calculate other currencies. For more detailed information can be found here

Easy Transactions with ForexGen

ForexGen offers the easiest, simplest and fastest way of Forex funds depositing, withdrawing and transferring provided with Customer Support personnel available 24/7 In order to serve its clients any time all over the world.ForexGen cares for its clients' funds, so that ForexGen allow funding operations with guarantee of ForexGen itself that your fund operations are executed with high level of security and privacy. Funds are accepted by wire transfer and e-gold payments.Deposit of funds is made easy through our short online form in your account management section, click here for a quick access (needs login)Account receivable funding could electronically funded by ForexGen after one business day, thus the client's account will be funded in the same day of receipt. For our client's security, each wire transfer reference section must contain the client's name and account number.ForexGen minimum deposit required to start trading is $250. Also we have no limit for depositing fund into your account.You have the absolute right to choose the amount you want to deposit For More Information Visit Forexgen

Advantages of Forex Vs. Stocks In order to maintain a diversified and growing portfolio, stock holdings need to be balanced by foreign exchange positions. Currency rates, economic issues and the health of the company in question compound the impact of stock positions in your portfolio. Forex provides the diversity that is necessary to maintain consistent portfolio growth. >> Forex Brings Profit in Bear and Bull Markets In the foreign exchange market, there is no short selling restriction. There is potential for profit in currencies regardless of which way the market moves. Forex always involves selling one currency to buy another, so there is no structural bias to the market. Depending on short and long positions, a trader always has an opportunity to profit in a fluctuating market. >> Forex Provides up to 50 Times the Leverage of Stocks Foreign exchange trading with Forex Capital Management can give you up to 50 times the leverage of your stock trading accounts. For every US$1,000 you invest in stocks, you gain control of at the most US$2,000 worth of shares. But with Forex Capital Management, margin of only US$1,000 gives you control of a currency trade of up to US$100,000 in currencies. >> Forex Makes Money on Interest News Any significant news regarding interest rates directly impacts the international financial markets. In the past, when a country has raised its interest rate, its currency strengthens relative to other currencies as investors shift assets to gain better returns. The influence of stock markets has changed this equation since increasing interest rates are typically bad news for the stock markets. Investors transfer money out of the stock market when interest rates rise, which can cause the currency of the country to weaken on the broader markets. Determining which effect will dominate can be difficult, but there is typically a consensus in the marketplace as to what a rate change will do. Rate changes are typically anticipated since they usually take place after regularly scheduled meetings of central banks. Indicators that typically have the biggest impact on interest rates are PPI, CPI, and GDP. >> Forex Offers Broad Diversity The balance of trade between nations is one determinant to the relative value of these currencies. A nation that imports more than it exports has a deficit trade balance, which is considered unfavorable to the value of that currency. Prudent investors know that they should diversify the U.S. Dollar balance in their assets through holding a range of currencies. This is challenging since most U.S. banks do not offer foreign currency accounts. Through foreign exchange trading, you control hundreds of thousands of dollars worth of currencies with up to 50 times more leverage than with your stocks. For every US$1,000 margin deposit, you control up to US$100,000 worth of Euros, or Pounds, or Yen, or the currency you believe will outperform the U.S. Dollar in the future. >> Forex – Perfect for Technical Traders Currencies rarely spend time in tight trading ranges, and there is a tendency for strong trends to develop. Over 80% of trading volume is speculative in nature, so the market frequently overshoots before correcting itself. A technically trained trader can identify these breakouts, providing a range of opportunities for entering and exiting positions. >> Analyze a Nation like a Corporation Currencies are always traded in pairs –one currency is purchased with holdings in another. As with stocks, better FX returns are provided by the currency of a country that demonstrates faster growth and is in a better economic condition that others.Currency pricing reflects the amount of available supply and demand. Interest rates and the relative strength of the economy are the two primary factors that determine the availability of a currency. Leading economic indicators reflect the economic health of a nation, and are in large part responsible for shifts. An overwhelming amount of data is available at regular intervals – the challenge is to determine what factors are more influential than others. Interest rates and international trade ratios are typically the most important. >> Trade Forex 24-Hours a Day Forex trading is a window to the world economy. Trading starts on Sunday at 5:00 PM Eastern Time with the opening of the markets in Singapore and Sidney. A couple of hours later, the Tokyo market is open. Next is London, which opens at 2:00 AM Eastern Time on Monday. And by the time the day catches up to New York, the world currency markets have been at work for fifteen hours. You determine the timing of your trades, instantly reacting to any news or market pressure. Trading stocks when the U.S. markets are closed is not easy and does not provide much liquidity. With forex, you can trade 24-hours a day in the largest and most liquid market in the world.

Opening a Trading Account Opening a new online trading account with a Forex broker can be done in three simple steps: Selecting an account type Registration Activating your account Before trading a dime of your hard earned money, you may want to think about opening demo account. Actually, open up two or three demos - why not? It’s all FREE! Try out several different brokers to get a feel for the right one for you. Account Types When you're ready to open a live account, you have the choice of opening a Forex trading account under your personal name or a business name. Also, you will have to decide whether or not you want to open a "standard" account or a "mini" account (or "micro" account if available). Inexperienced traders or traders with a small amount of capital to trade should always open a mini account. Only experienced traders with lots of money should open a standard account. Always read the fine print. Some brokers have a “managed account” option in their applications. If you want the broker to trade your account for you, pick this, but obviously you’re here to learn how to trade the Forex for yourself. Besides, opening a managed account typically requires a pretty big minimum deposit - $25,000 or higher - and the broker also takes a portion of the profits. Also, make sure you open a Forex spot account and not a “forwards” or “futures” account. Registration You will have to submit paperwork in order to open an account and the forms will vary from broker to broker. They are usually provided in PDF format and can be viewed and printed using Adobe Acrobat Reader program. Account Activation Once the broker has received all the necessary paperwork, you should receive an email with instructions on completing your account activation. After these steps have been completed, you will receive a final email with your username, password, and instructions on how to fund your account.

hings To Avoid Sniping or Hunting - Sniping and hunting - or prematurely buying or selling near preset points - are shady acts committed by brokers to increase profits. Obviously, no broker admits to committing these acts, but a notion that a broker has practiced sniping or hunting is commonly believed to be true. Unfortunately, the only way to determine which brokers do this and which brokers don't is to talk to fellow traders. There is no blacklist or organization that reports such activity. Bottom line: Talk to others in person or visit online discussion forums to find out who is an honest broker. Strict Margin Rules - When you are trading with borrowed money, your broker has a say in how much risk you take. As such, your broker can buy or sell at its discretion, which can be a bad thing for you. Let's say you have a margin account, and your position takes a dive before rebounding to all-time highs. Well, even if you have enough cash to cover, some brokers will liquidate your position on a margin call at that low. This action on their part can cost you dearly. Bottom line: Again, talk to others in person or visit online discussion forums to find out who the honest brokers are. Signing up for a forex account is much the same as getting an equity account. The only major difference is that, for forex accounts, you are required to sign a margin agreement. This agreement states that you are trading with borrowed money, and, as such, the brokerage has the right to interfere with your trades to protect its interests. Once you sign up, simply fund your account, and you'll be ready to trade!

The main participants in forex market can be divided into the following types: banks, some commercial companies and some foreign currency brokers. Broker is the intermediary who helps you access to foreign exchange (forex). Similar to a stock broker, these agents can also provide advice on forex trading strategies. This advice to clients often extends to technical analysis and research approaches designed to improve client forex trading performance. Choosing a Broker There are many forex brokers to choose from, just as in any other market. Here are some things to look for: Low Spreads - The spread, calculated in "pips", is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time. Forex brokers don't charge a commission, so this difference is how they make money. In comparing brokers, you will find that the difference in spreads in forex is as great as the difference in commissions in the stock arena. Bottom line: Lower spreads save you money! Quality Institution - Unlike equity brokers, forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required (leverage they need o provide). Also, forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). You can find this and other financial information and statistics about a forex brokerage on its website or on the website of its parent company. Bottom line: Make sure your broker is backed by a reliable institution! Extensive Tools and Research - Forex brokers offer many different trading platforms for their clients - just like brokers in other markets. These trading platforms often feature real-time charts, technical analysis tools, real-time news and data, and even support for trading systems. Before committing to any broker, be sure to request free trials to test different trading platforms. Brokers usually also provide technical and fundamental commentaries, economic calendars and other research. Bottom line: Find a broker who will give you what you need to succeed! Wide Range of Leverage Options - Leverage is necessary in forex because the price deviations (the sources of profit) are merely fractions of a cent. Leverage, expressed as a ratio between total capital available to actual capital, is the amount of money a broker will lend you for trading. For example, a ratio of 100:1 means your broker would lend you $100 for every $1 of actual capital. Many brokerages offer as much as 250:1. Remember, lower leverage means lower risk of a margin call, but also lower bang for your buck (and vice-versa). Bottom line: If you have limited capital, make sure your broker offers high leverage. If capital is not a problem, any broker with a wide variety of leverage options should do. A variety of options lets you vary the amount of risk you are willing to take. For example, less leverage (and therefore less risk) may be preferable for highly volatile (exotic) currency pairs. Account Types - Many brokers offer two or more types of accounts. The smallest account is known as a mini account and requires you to trade with a minimum of, say, $250, offering a high amount of leverage (which you need in order to make money with so little initial capital). The standard account lets you trade at a variety of different leverages, but it requires a minimum initial capital of $2,000. Finally, premium accounts, which often require significant amounts of capital, let you use different amounts of leverage and often offer additional tools and services. Bottom line: Make sure the broker you choose has the right leverage, tools, and services relative to your amount of capital.

Forex Terminology

Pip Every trader in the Foreign Exchange ‘FOREX’ hopes to make a profit from something called ‘PIP’. It may sound silly, but gains in pips can potentially make you over wealthy .Take your time with this information, as it is required knowledge for all Forex traders. Don’t even think about trading until you are comfortable with pip values and calculating profit and loss. What is a pip ? Pips stands for ‘PERCENTAGE IN PIONTS’. In the Forex trading, a ‘PIP’ is a unit of measurement which represents the smallest change in the price of currency or a currency pair. In the stock markets this is a classified as a ‘POINT’. As a result, some folks refer to pips as points. Pips are the last decimal point in an exchange rate or currency pair. For the majority of currencies a ‘PIP’ is equal to 0.0001. This means that if you purchased USD/CHF at 1.2310 and sold at 1.2330, you made 20 pips .On the other hand, there are some currency pair exceptions. FOR EXAMPLE: The USD/JPY pair has only two decimal places making a pip equal 0.01. Therefore, USD/JPY: 110.78 .01 divided by exchange rate = pip value .01 / 110.78= 0.0090269This looks like a very long number but later we will discuss lot size. USD/CHF: 1.1227 .0001 divided by exchange rate = pip value .0001 /1.1227 = 0.0089070 USD/CAD: 1.2780 .0001 divided by exchange rate = pip value .0001 / 1.2780 = 0.0078247 In the case where the US Dollar is not quoted first and we want to get the US Dollar value, we have to add one more step. GBP/USD: 1.9799 .0001 divided by exchange rate = pip value So .0001 / 1.9799 = GBP 0.0050507 But we need to get back to US dollars so we add another calculation which is GBP x Exchange rate So 0.00505076 x 1.9799 =0.0099998 When rounded up it would be 0.0001 Don’t worry, you don’t have to do that, but it’s really important for you to know how the Forex brokers will work this out. What is a lot ? The value of a pip changes based upon the size of your account, because the size of your account affects how much currency you can leverage. A standard full size account is 100,000 units of the base currency. If you are trading in USD, The Value of the ‘LOT’ in the standard account is $100.000.A mini ‘LOT’ is 10,000 units of the base currency. If you are trading mini ‘LOTS’, you can leverage $10,000.This is why a pip in a mini account is worth less than a pip in a standard account. Let’s assume we will be using a $10,000 lot size. We will now recalculate some examples to see how it affects the pip value. USD/JPY at an exchange rate of 110.78 (.01 / 110.78) x $10,000 = $0.092 per pipUSD/CHF at an exchange rate of 1.1227 (.0001 / 1.1227) x $10,000 = $0.98 per pip. In cases where the US Dollar is not quoted first, the formula is slightly different. GBP/USD at an exchange rate of 1.9799 (.0001 / 1.9799) x GBP 10,000 = 0.50 x 1.9799 = $1 per pip How do I calculate profits and losses? When you close out a trade, you can calculate your profits and losses using the following formula: Price (exchange rate) when selling the base currency - price when buying the base currency X transaction size = profit or loss Assume you buy Euros (EUR/USD) at 1.2178 and sell Euros at 1.2188. If the transaction size is 100,000 Euros, you will have a $100 profit. ($1.2188 - $1.2178) X 100,000 = $.001 X 100,000 = $100 Similarly, if you sell Euros (EUR/USD) at 1.2170 and buy Euros at 1.2180, you will have a $100 loss. ($1.2170 - $1.2180) X 100,000 = - $.001 X 100,000 = - $100 You can also calculate your unrealized profits and losses on open positions. Just substitute the current bid or ask rate for the action you will take when closing out the position. For example, if you bought Euros at 1.2178 and the current bid rate is 1.2173, you have an unrealized loss of $50. ($1.2173 - $1.2178) X 100,000 = - $.0005 X 100,000 = - $50 Similarly, if you sold Euros at 1.2170 and the current ask rate is 1.2165, you have an unrealized profit of $50. ($1.2170 - $1.2165) X 100,000 = $.0005 X 100,000 = $50 If the quote currency is not in US dollars, you will have to con- vert the profit or loss to US dollars at the dealer's rate. Further, if the dealer charges commissions or other fees, you must subtract those commissions and fees from your profits and add them to your losses to determine your true profits and losses. What is Leverage ? This is the one characteristic that makes ‘FOREX’ trading so appealing trading more money than you have in your account. It’s of course a double sword and creates risk. The bulk traders fail at ‘FOREX’ trading because the over leverage their positions. For example, for every $1,000 you have, you can trade 1 lot of $100,000. So if you have $7,000 they may allow you to trade up to $700,000 of forex. Leverage to deal with it you need to enter & exit at optimum risk reward. What is a margin call ? A broker’s demand on an investor using margin to deposit additional money or securities so that the margin account in brought up to the minimum maintenance margin. This is sometimes called ‘fed call’ or ‘ maintenance call.You would receive a ‘MARGIN CALL’ from a broker if one or more of the securities you had bought (with borrowed money) decreased in value past a certain point. You would be forced either to deposit more money in the account or to sell some of your assets. Example #1 Let’s say you open a regular Forex account with $3,000 (not a smart idea). You open 1 lot of the EUR/USD, with a margin requirement of $1000. Usable Margin is the money available to open new positions or sustain trading losses. Since you started with $3,000, your usable margin is $3,000. But when you opened 1 lot, which requires a margin requirement of $1,000, your usable margin is now $2,000. If your losses exceed your usable margin of $1,000 you will get a margin call. Example #2 Let’s say you open a regular Forex account with $15,000. You open 1 lot of the EUR/USD, with a margin requirement is $1000. Remember, usable margin is the money you have available to open new positions or sustain trading losses. So prior to opening 1 lot, you have a usable margin of $15,000. After you open the trade, you now have $14,000 usable margin and $1,000 of used margin. If your losses exceed your usable margin of $14,000, you will get a margin call. Remember: there's a difference between ‘USABLE MARGIN’ & ‘USED MARGIN’

Order Types The term "order" refers to how you will enter or exit a trade. Here we discuss the different types of orders that can be placed into the foreign exchange market. Be sure that you know which types of orders your broker accepts. Different brokers accept different types of orders. Order Types Basic Order Types There are some basic order types that all brokers provide and some others that sound weird. The basic ones are: Market order A market order is an order to buy or sell at the current market price. For example, EUR/USD is currently trading at 1.2140. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price. If you ever shop on Amazon.com, it's (kinda) like using their 1-Click ordering. You like the current price, you click once and it's yours! The only difference is you are buying or selling one currency against another currency instead of buying Britney Spears CDs. Limit order A limit order is an order placed to buy or sell at a certain price. The order essentially contains two variables, price and duration. For example, EUR/USD is currently trading at 1.2050. You want to go long if the price reaches 1.2070. You can either sit in front of your monitor and wait for it to hit 1.2070 (at which point you would click a buy market order), or you can set a buy limit order at 1.2070 (then you could walk away from your computer to attend your ballroom dancing class). If the price goes up to 1.2070, your trading platform will automatically execute a buy order at that exact price. You specify the price at which you wish to buy/sell a certain currency pair and also specify how long you want the order to remain active (GTC or GFD). Stop-loss order A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you. A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order. For example, you went long (buy) EUR/USD at 1.2230. To limit your maximum loss, you set a stop-loss order at 1.2200. This means if you were dead wrong and EUR/USD drops to 1.2200 instead of moving up, your trading platform would automatically execute a sell order at 1.2200 and close out your position for a 30 pip loss (eww!). Stop-losses are extremely useful if you don't want to sit in front of your monitor all day worried that you will lose all your money. You can simply set a stop-loss order on any open positions so you won't miss your basket weaving class. Weird Sounding Order Types GTC (Good ‘til canceled) A GTC order remains active in the market until you decide to cancel it. Your broker will not cancel the order at any time. Therefore it's your responsibility to remember that you have the order scheduled. GFD (Good for the day) A GFD order remains active in the market until the end of the trading day. Because foreign exchange is a 24-hour market, this usually means 5pm EST since that that's U.S. markets close, but I’d recommend you double check with your broker. OCO (Order cancels other) An OCO order is a mixture of two limit and/or stop-loss orders. Two orders with price and duration variables are placed above and below the current price. When one of the orders is executed the other order is canceled. Example: The price of EUR/USD is 1.2040. You want to either buy at 1.2095 over the resistance level in anticipation of a breakout or initiate a selling position if the price falls below 1.1985. The understanding is that if 1.2095 is reached, you will buy order will be triggered and the 1.1985 sell order will be automatically canceled. Always check with your broker for specific order information and to see if any rollover fees will be applied if a position is held longer than one day. Keeping your ordering rules simple is the best strategy. Summary The basic order types (market, stop loss, and limit) are usually all that most traders ever need. Unless you are a veteran trader (yeah right), don’t get fancy and design a system of trading requiring a large number of orders sandwiched in the market at all times – stick with the basic stuff first. Make sure you fully understand and are comfortable with your broker’s order entry system before executing a trade. DO NOT make a trade with real money until you have an extremely high comfort level with the trading platform and order entry system.

Currency Day Trading Examples With the information we have covered so far, let's show a few examples of how much money can be made (or lost!) daily by trading currencies (please note that these are just examples for educational purposes). Example 1: A trader thinks the euro will gain value versus the dollar (EUR/USD is at 1.2150) Let's say that the price of the euro-dollar pair is 1.2150 and a day trader, based on his strategy, gets a signal that the euro is going to continue to go up. The trader buys 100,000 EUR (1 lot) at 1.2155 (121,550 USD). If the trader's margin requirement is 2%, his margin deposit would be 2,000 euros or 2,431 dollars. The trader automatically sets a stop loss of 25 pips based on his technical trading strategy. As the trader expected, the EUR/USD goes up to 1.2225 (on paper, everything works!). Assuming this meets the profit requirements of his day trading system, the trader sells the 100,000 euros. He receives 100,000 x 1.2225 = 122,250 USD. Since the trader originally sold (paid) 121,550 USD for the euros, his profit is 122,250 - 121,550 = 700 USD. Please note: Using leverage magnifies both profits and losses. Example 2: A trader thinks the yen will appreciate in value versus the dollar (USD/JPY is at 108.65) The price of the dollar-yen is dropping and is currently at 108.65. A day trader gets a sell signal based on his trading strategy. He sells 100,000 USD (1 lot) at 108.60 and receives 10,860,000 Japanese yen. Assuming a 2% margin requirement, the deposit would be 2,000 dollars. Right after placing his trade, the trader places a stop loss of 30 pips based on his day trading strategy. The trader was right and the yen appreciates versus the dollar (dollar loses value relative to the yen), pushing the exchange rate down to 107.50. Satisfied with his profit, the trader sells the 10,860,000 yen at 107.50. He receives, 10,860,000 / 107.50 = 101,023 USD. Since he had originally paid (sold) 100,000 USD for the yen, his profit is 101,023 - 100,000 = 1,023. Please note: Using leverage magnifies both profits and losses. Example3: Trader x has an account of USD 50'000. He buys EUR/USD 500'000 @ 1.1500 at the market and places a stop loss order at 1.1460. At this point his maximum risk is USD 2'000 and his margin utilization is 10%, well above the minimum. During the day the forex market fluctuates and initially moves down to 1.1480. At this point trader x has an unrealized loss of USD 1'000 and his margin utilization has fallen to 9.60% reflecting the effect of the downward move on his margin capacity. Later still the price moves back up to 1.1550 and trader x decides to take profit. He sells at 1.1550 making a USD 2'500 profit which represents a 5% return on his account value. Note that trader x took only a risk of USD 2'000 and made a return of USD 2'500 this equates to a risk/reward ratio of 1.25. A high risk reward ratio is what every trader should be aiming for. Please note that in this example no mention was made of the exact day trading strategy that the trader used to place his trades and set his stop losses. A trading strategy or system is extremely important and it has to be specifically defined, even if it was not discussed in these examples. Also, proper money management (how much should the trader have risked on the trades) was not discussed either. This was done for simplicity's sake. Generally speaking, a trader should never risk more than a certain amount of his trading capital on any given trade. Read my article about adhering to a specific day trading strategy. Familiarize yourself with forex trading with our free forex demo account.

Why is Forex so popular? Trading Forex is so easy, anyone can do it. You don't need to watch Bloomberg TV every morning or to buy every financial newspaper to determinate the trend. The Forex Market is highly predictable. The forex market is so large and has so many participants that no one player, not even a large government, can completely control the long-term direction of the market. That's why so many experts have called forex the "most level playing field" on earth. The ‘FOREX’ market is unique because of the following features: -trading volume, - the extreme liquidity, - the large number of, and variety of, traders, - geographical dispersion, - long trading hours - 24 hours a day (except on weekends). - the variety of factors that affect exchange rates, Average daily international foreign exchange trading volume was $1.9 trillion in April 2004 according to the BIS study Triennial Central Bank Survey 2004- $600 billion spot- $1,300 billion in derivatives, ie- $200 billion in outright forwards- $1,000 billion in Forex swaps- $100 billion in FX options. There is little or no 'inside information' in the foreign exchange markets. Exchange rate fluctuations are usually caused by actual monetary flows as well as by expectations of changes in monetary flows caused by changes in GDP growth, inflation, interest rates, budget and trade deficits or surpluses, and other macroeconomic conditions. Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time. On the spot market, according to the BIS study, the most heavily traded products were:- EUR/USD - 28 %- USD/JPY - 17 %- GBP/USD (also called cable) - 14 %and the US currency was involved in 89% of transactions, followed by the euro (37%), the yen (20%) and sterling (17%). (Note that volume percentages should add up to 200% - 100% for all the sellers, and 100% for all the buyers). Although trading in the euro has grown considerably since the currency's creation in January 1999, the foreign exchange market is thus still largely dollar-centered. For instance, trading the euro versus a non-European currency ZZZ will usually involve two trades: EUR/USD and USD/ZZZ. The only exception to this is EUR/JPY, which is an established traded currency pair in the interbank spot market.The main trading centers are in London, New York, and Tokyo, but banks throughout the world participate. As the Asian trading session ends, the European session begins, then the US session, and then the Asian begin in their turns. Traders can react to news when it breaks, rather than waiting for the market to open. What Tools Do I Need to Start Trading Forex? A computer with a high-speed Internet connection and all the information on this site is all that is needed to begin trading currencies. How much money does it take to open a real money trading account? If you're a new student of forex, you should first practice with a free practice account, often called "demo trading," using "pretend" money. When you feel ready to trade with real money, you can open a "mini" account with as little $250 USD, although we recommend starting with no less than $1000-$2000.

Which Currencies Are Traded? The most popular currencies along with their symbols are shown below: EUR — Euros USD — United States dollar CAD — Canadian dollar GBP — British pound JPY — Japanese yen AUD — Australian dollar CHF — Swiss franc NZD — New Zealand dollar Forex currency symbols are always three letters, where the first two letters identify the name of the country and the third letter identifies the name of that country’s currency. When does Forex trading occur? The first session, which is the Tokyo Session, begins each week on Monday morning in the Asia-Pacific region which is Sunday evening in the Americas. Trading continues non-stop moving into the London Session and on to the New York Session until all markets close on Friday afternoon. Most retail forex transactions have a settlement date when the currencies are due to be delivered. If you want to keep your position open beyond the settlement date, you must roll the position over to the next settlement date. Some dealers roll open positions over automatically, while other dealers may require you to request the rollover. Most dealers charge a rollover fee based upon the interest rate differential between the two currencies in the pair. You should check your agreement with the dealer to see what, if anything, you must do to roll a position over and what fees you will pay for the rollover. The Forex market (OTC): The Forex OTC market is by far the biggest and most popular financial market in the world, traded globally by a large number of individuals and organizations. In the OTC market, participants determine who they want to trade with depending on trading conditions, attractiveness of prices and reputation of the trading counterpart. What Are the Advantages of trading forex ? 1) High liquidity. (i.e. an opportunity of reception under the transaction of money, instead of the goods). The market on which money are assets, have highest of all possible liquidities. This circumstance is powerful attractive force for any investor since it provides to him freedom to open and close a position of any volume. The FOREX market with an average trading volume of over $1.5 trillion per day is the most liquid market in the world. That means that a trader can enter or exit the market at will in almost any market condition minimal execution barriers or risk and no daily trading limit. 2) Efficiency (a 24-hour market). The main advantage of the Forex market over the stock market and other exchange-traded instruments is that the Forex market is a true 24-hour market. Whether it's 6pm or 6am, somewhere in the world there are always buyers and sellers actively trading Forex so that investors can respond to breaking news immediately. In the currency markets, your portfolio won't be affected by after hours earning reports or analyst conference calls. Recently, after hours trading has become available for U.S. stocks - with several limitations. These ECNs (Electronic Communication Networks) exist to bring together buyers and sellers when possible. However, there is no guarantee that every trade will be executed, nor at a fair market price. Quite frequently, stock traders must wait until the market opens the following day in order to receive a tighter spread. A trader may take advantage of all profitable market conditions at any time; no waiting for the 'opening bell'. 3) Cost. Forex market. traditionally has no commission charges, except for a natural market difference (spread) between the prices of a supply and demand. The retail transaction cost (the bid/ask spread) is typically less than 0.1% (10 pips or points) under normal market conditions. At larger dealers, the spread could be less than 5 pips, and may widen considerably in fast moving markets. 4) Avoiding instability problems. Because of high liquidity of the market the sale of practically unlimited lot can be executed on a uniform market price. It allows to avoid a problem of the instability, existing in futures and other share investments where during one time and for a determined price can be sold only the limited quantity of contracts. 5) The margin size. The size of credit "shoulder" (margin) in Forex market is defined only by the agreement between the client and that bank or broker firm which provides to him an output on the market, and makes 1:33, 1:50 or 1:100, for example. On Forex market the traditional size of "shoulder" 1:100, i.e., having brought the mortgage in 1000 dollars, the client can make transactions for the sum, equivalent 100 thousand dollars. Use of an opportunity of crediting, together with strong variability of quotations of currencies, also does this market highly remunerative and highly risky. A leverage ratio of up to 400 is typical compared to a leverage ratio of 2 (50% margin requirement) in equity markets. Of course, this makes trading in the cash/spot forex market a double-edged sword the high leverage makes the risk of the down side loss much greater in the same way that it makes the profit potential on the upside much more attractive. 6) Always a bull market. A trade in the FOREX market involves selling or buying one currency against another. Thus, a bull market or a bear market for a currency is defined in terms of the outlook for its relative value against other currencies. If the outlook is positive, we have a bull market in which a trader profits by buying the currency against other currencies. Conversely, if the outlook is pessimistic, we have a bull market for other currencies and a trader profits by selling the currency against other currencies. In either case, there is always a bull market trading opportunity for a trader. 7) Inter-bank market. The backbone of the FOREX market consists of a global network of dealers (mainly major commercial banks) that communicate and trade with one another and with their clients through electronic networks and telephones. There are no organized exchanges to serve as a central location to facilitate transactions the way the New York Stock Exchange serves the equity markets. The FOREX market operates in a manner similar to the way the NASDAQ market in the United States operates, and thus it is also referred to as an 'over the counter' or OTC market. 8) No one can corner the market. The FOREX market is so vast and has so many participants that no single entity, even a central bank, can control the market price for an extended period of time. Even interventions by mighty central banks are becoming increasingly ineffectual and short-lived, and thus central banks are becoming less and less inclined to intervene to manipulate market prices. 9) Unregulated. The FOREX market is generally regarded as an unregulated market although the operations of major dealers, such as commercial banks in money centers, are regulated under the banking laws. The conduct and operation of retail FOREX brokerages are not regulated under any laws or regulations specific to the FOREX market, and in fact many of such establishments in the United States do not even report to the Internal Revenue Service (IRS). The currency futures and options that are traded on exchanges such as Chicago Mercantile Exchange (CME) are regulated in the way other exchange-traded derivatives are regulated. 10) Equal access to market information. Professional traders and analysts in the equity market have a definitive competitive advantage by virtue of that fact that they have first access to important corporate information, such as earning estimates and press releases, before it is released to the general public. In contrast, in the Forex market, pertinent information is equally accessible, ensuring that all market participants can take advantage of market-moving news as soon as it becomes available. 11) Profit potential in both rising and falling markets. In every open FX position, an investor is long in one currency and short the other. A short position is one in which the trader sells a currency in anticipation that it will depreciate. This means that potential exists in a rising as well as a falling FX market. The ability to sell currencies without any limitations is one distinct advantage over equity trading. It is much more difficult to establish a short position in the US equity markets, where the Uptick rule prevents investors from shorting stock unless the immediately preceding trade was equal to or lower than the price of the short sale.

The Foreign Exchange Market (FOREX) What is FOREX? The Foreign Exchange Market, better Known as FOREX, was established in 1971 when fixed currency exchanges were abolished. Currencies became valued at ‘floating’ rates determined by supply and demand. The FOREX grew steadily throughout the 1970’s, but with the technological advances of the 80’s FOREX expanded from trading levels of $70 billion a day to the current level of $2.6 trillion. The Foreign Exchange Market, is a worldwide market for buying and selling currencies. It handles a huge volume of transactions 24 hours a day, 5 days a week. Daily exchanges are worth approximately $2.6 trillion (US dollars). In comparison, the United States Treasury Bond market averages $300 billion a day, and American stock markets exchange about $25 billion a day, you can see how enormous the Foreign Exchange really is. It actually equates to more than three times the total amount of the stock and futures markets combined. What Drives the forex market? Different countries use different currencies, however cross-border has to take place. The FOREX is therefore a vehicle driven by the need to move monetary payments across border and transfer funds and value from one currency to another. If the whole world used one currency there would be no need for the FOREX market. For example if a US restaurant needs to buy Italian cheese it needs Euros to pay the Italian cheese maker so it must be able to exchange US dollars for Euros. Likewise if the US restaurant makes the payment in US dollars the Italian cheese maker must be able to exchange the dollars into Euros. It's as simple as that. What is traded on the Foreign Exchange? The simple answer is money. Forex trading is the simultaneous buying of one currency and the selling of another. Currencies are traded through a broker or dealer, currencies are always traded in pairs; EX: the US dollar against Japanese yen, or the English pound against the Euro. So if a broker or a dealer believes that the Euro will gain against the dollar, he will sell dollars and buy Euros.Because you're not buying anything physical, this kind of trading can be confusing. Think of buying a currency as buying a share in a particular country. When you buy, say, Japanese Yen, you are in effect buying a share in the Japanese economy, as the price of the currency is a direct reflection of what the market thinks about the current and future health of the Japanese economy. Can I trade from home? Trade from anywhere. If you like to travel, this is a dream business. Take your laptop with you and you can trade the FOREX and make money anywhere in the world where you have an internet connection. You can be on the white-sand beaches of Guadeloupe (My country).You have total freedom of location. FX Trading is not bound to any one trading floor and is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.All you need to get started is a computer, a high-speed Internet connection, and the information contained within this site. What is the spot market and on what exchange is it traded? In the Wall Street Journal, one can read quotations for the spot rate, forward rate, and options. At the spot rate, currencies can be exchanged within two days i.e. on the spot. The word market is a slight misnomer in describing Forex trading, since there is no central location where trading takes place. The bulk of trading is between 300 large international banks, which process transactions for large companies and governments. These institutions are continuously providing prices for each other and the broader market. The most recent quotation from one of these banks is considered the market's price for that currency. Forex trading is not bound to any one trading floor, but done electronically between a network of banks continuously and over a 24-hour period.

New to Forex Markets? Forex is definitely one of the most exciting and profitable markets. If you want to join the elite and start investing you need to follow 5 very simple steps that will eventually lead you to success: Self Study: In order to start investing you need to study and observe the Forex market carefully so that you can make the right decisions when the time comes. You can study the fundamental analysis to monitor the political and economic news' effect on FX market. Also the study of technical analysis is useful as it predicts the price movement based on past experience.ForexGen offers a Training section developed specially for new traders. This section mainly contain comprehensive summarized documents teaching you how to deal with the Forex market and what procedures you need to follow in order to minimize the risk. • Practice: ForexGen's Demo account gives you the chance to practice your Forex trading skills with absolutely no obligation on your side. You will also be able to learn how to virtually place market orders and stop-loss orders without risking a penny. • Investment Strategy: After gaining enough knowledge about the Forex market, you are ready to start putting a strategy for your investment. First thing you should do is make sure not to let your emotions get in the way of your strategy as it’s a common mistake made by new traders. Secondly you need to make some decisions like how much you are willing to risk, if it's worth risking, if the market is suitable for that kind of investment and finally you always have to be aware of the amount of money you are risking and if you have enough funds to maintain your margin. • Observation: Once you have started your investment, you are now capable of being automatically connected 24/7 throughout ForexGen's new trailing stop software. Trailing stop allows you to control your balance 24 hours a day. • Open your live account now: Knowledge, practice, strategy and tools. You are definitely ready to start your investment by opening your first live account. Not like the demo account, you will now start committing real money. Just remember to stick to your strategy.