What is traded on the Foreign Exchange? | ForexGen

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.

Protect Your Self

Before we go any further we are going to be 100% honest with you and tell you the following before you consider trading currencies:All forex traders traders LOSE money on tradesNinety percent of traders lose money, largely due to lack of planning and training and having poor money management rules.

Trading forex is not for the unemployed, those on low incomes, or who can’t afford to pay their electricity bill or afford to eat.

The Forex market is one of the most popular markets for speculation, due to its enormous size, liquidity and tendency for currencies to move in strong trends.Many traders come with the misguided hope of making a gazillion bucks, but in reality, lack the discipline required for trading.

Most people usually lack the discipline to stick to a diet or to go to the gym three times a week.

ForexGen LTD History

ForexGen LTD is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.ForexGen LTD provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.ForexGen LLXserves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.Read more…

Exponential Moving Average (EMA)

In order to reduce the lag in simple moving averages, technicians often use exponential moving averages (also called exponentially weighted moving averages). exponential moving average reduce the lag by applying more weight to recent prices relative to older prices. The weighting applied to the most recent price depends on the specified period of the moving average. The shorter the exponential moving average’s period, the more weight that will be applied to the most recent price.For example: a 10-period exponential moving average weighs the most recent price 18.18% while a 20-period EMA weighs the most recent price 9.52%. As we will see, the calculating and exponential moving average is much harder than calculating an simple moving average. The important thing to remember is that the exponential moving average puts more weight on recent prices.exponential Moving Average CalculationExponential Moving Averages can be specified in two ways - as a percent-based exponential moving average or as a period-based exponential moving average.

Simple Moving Average (SMA)

the simple moving average is formed by calculating the average price of a security over a particular number of periods. While it is possible to create moving averages from the Open, the High and the Low data points, most moving averages are created using the closing price.For example: a 4-day simple moving average is calculated by adding the closing prices for the last 4 days and dividing the total by 4.11+ 12 + 13 + 14 = 50(50 / 4) = 12.5The calculation is repeated for each price bar on the chart. The averages are then joined to form a smooth curving line - the moving average line. Continuing our example, if the next closing price in the average is 15, then this new period would be added and the oldest day.Visit : http://www.forexgen.com

Fibonacci Extension

Fibonacci Extensionwhat is fibonacci and how to use it in the world of FX?Leonardo Fibonacci was a 13th century mathematician who noted that there are certain ratios that tend to occur repeatdly in nature . The common ones that he identified were 38.2%, 50%, and 61.8%.For example, the distance from your fingertips to your wrist is 38.2% of the distance from your fingertips to your elbow. There is overwhelming evidence of Fibonacci ratios operating throughout nature.These are not always perfect, but surprisengly they work more than just often!! Many people have argued about why these work, but my opinion is that all the large institutions use them, so you might as well buy or sell at the same levels that they do and if these levels don’t hold you can get out with a small loss.

ForexGen`s Channels

There are 2 types of channels in the forex market :1-If you want to create a down channel, it may also be called a descending channel, you can simply draw a line at the same angle as the downtrend and after that move the line to a new place where it can reach the most recent both valley.For the both channels ,it should be done at the same time to you to create the trend line.It may be a sell signal when the prices hit the up trend line and it can be a buy signal when the prices hits the down trend line .