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 .

Trend Lines With ForexGen

The trend lines are a popular and an important type in technical analysis for trend identification and confirmation, They are also one of the most derutilized as well.There are two kinds of trends:Stock up trend: it can be used like a sell signal, deemed to be complete with the formation of a lower high or a lower low.Stock downtrend: it can be used like a buy signal , deemed to be complete with the formation of a higher low or higher high.

Support and Resistance With ForexGen

The concepts of support and resistance are undoubtedly two of the most important and highly discussed attributes of technical analysis and they are often regarded as a subject that is complex by those who are just learning to trade.Most experienced traders will be able to tell many stories about how certain price levels tend to prevent traders from pushing the price of an underlying asset in a certain direction.Most technical traders incorporate the power of various technical indicators such as moving averages, to aid in predicting future short-term momentum, but these traders never fully realize the ability these tools have for identifying levels of support and resistance

Lagging Indicators Of ForexGen

An index published monthly by the Conference Board that is used to confirm the direction of the economy’s movements in past months.1. the value of outstanding commercial and industrial loans.2. The change in the consumer price index for services from the previous month.3. The change in labor cost per unit of labor output.4. The ratio of manufacturing and trade inventories to sales made.5. The ratio of consumer credit outstanding to personal income.6. The average prime rate charged by banks.As it measures the economic activities of previous months, the Composite Index of Lagging Indicators is used as an after-the-fact way to help confirm economists’ assessment of current economic conditions.

Oscillators Of ForexGen

The Stochastic Oscillator comes in 3 flavors: Fast, Slow, and Full. The Stochastic Oscillator is a momentum indicator designed to show the relation of the current close price relative to the high/low range over a given number of periods using a scale of 0-100. It is based on the assumption that in a rising market the price(s) will close near the high of the range and in a declining market the price(s) will close near the low of the range. The Full Stochastic Oscillator is calculated by the formula:Fast %K = ((Today’s Close - Lowest Low in %K Periods) / (Highest High in %K Periods - Lowest Low in %K Periods))

Leading vs. Lagging Indicators

Leading IndicatorsAn index published monthly by the Conference Board used to predict the direction of the economy’s movements in the months to come. The index is made up of 10 economic components, whose changes tend to precede changes in the overall economy.These 5 components include:1. the average weekly hours worked by manufacturing workers.2. The average number of initial applications for unemployment insurance.3. The amount of manufacturer’s new orders for consumer goods and materials.4. The speed of delivery of new merchandise to vendors from suppliers.5. The amount of new orders for capital goods unrelated to defense.

ForexGen`s Bollinger Bands

The Bollinger bands are used to measure the market’s volatility. When the market is quiet, the bands contract; but when the market is LOUD, the bands expand. when the price was quiet, the bands were close together, but when the price moved up, the bands spread apart.
THE BOLLINGER BOUNCE
The Bollinger Bands occurs when the price tends to return to the middle of the bands.
Bollinger Squeeze
When the bands “squeeze” together, that’s mean a breakout is going to happen. If the candles start to move up to the band under the lower band, then the move will continue to go down

Claim your Bonus

Special Promotion for New Clients Free cash bonus when you open your new live account within the next 30 days. You will receive a FREE cash bonus which will be added to your trading account. The cash bonus depends on the account type you open. Open A New Live Account Now Mini Account10% of your deposit maximum $250 Standard Account 10% of your deposit maximum $500 To be able to withdraw your free cash bonus, you need at least to open 20 trading lots in period not exceeds 3 months.For more information about our current and future promotions, contact one of our customers support agents at promotions @f orexgen.com, or you can chat with our representatives, you can also request a call back from one of our agents by sending us your contact number and the best time we can reach you. ReadMore..

Live Contest With forexGen

ForexGen has the pleasure to announce the launching of its first monthly Live Accounts contest,
This is NOT a demo contest
this is a live trading competition open for all live mini account holders. At the beginning of each month, the slate is wiped clean and traders have a new opportunity to win the monthly prizes.
What makes this contest unique?
All prizes are CASH prizes with no restrictions on withdrawing the prize money!
How Do I Enter?
You don’t have to pay any fee to enter this contest, all ForexGen mini Accounts with a balance of “$1000″ and a default leverage of 1:200 are entitled to participate in this contest upon their account holder request by sending an e-mail request on mailto:contest%20@ forexgen.comincluding their “live Account Number”. This e-mail address is being protected from spam bots, you need JavaScript enabled to view it By the end of each month, the highest 5 accounts with the highest profits (including floating P/L)

Winners will be announced by the 15th of the following month. You can also request a call back from one of our agents by sending us your contact number and the best time we can reach you Read More..

Pair’s Hedging Detector

In today’s financial and business world, the hedging concept can be considered as one of the most important issues traders’ faces every day. Some people think that applying hedging concepts is something confidential or highly classified; in fact almost all Forex traders in Forex trading market apply the hedging concept. To make this term more understandable we can say that hedging concept can be described as applying insurance in our trading activities In Forex markets, hedging concept is almost the same as getting insurance, the only clear difference is that hedging does not cover for accident; instead, hedging covers for the amount of losses traders might face in Forex trading. Moreover, hedging is commonly applied in the business and financial world where most of traders hedge their transactions in order to protect themselves from losing their gain.

Automated Forex Trading - More Trades with ForexGen

This article is part of my ongoing evaluation of ForexGen’s Forex System Selector, a web based automated trading tool that allows the user to select one or more trading systems, and have them automatically traded against an account.
This is running against a one month demo account, which is funded with $100,000. Previous articles have given an overview of the product and the first trades. This article provides an update on trading performance to date.
In terms of the operational smoothness of the system, I can report that it continues to operate flawlessly. I am taking note of this because I have tried several other products that were unstable and continually lost server connectivity. The fact that this product is web based, and on ForexGen’s own server means that connectivity to ForexGen’s quotes and trade execution engine is well controlled. Read more…

World Currency Watch with ForexGen

The ECB’s and BOE’s rate decisions puts more wind to the back of EUR/GBP!
The Eurozone and the U.K. economies continue to diverge.
For years and years, these two economies followed each other up and down in “lock step”. Then the credit/sub-prime crisis hit. This pushed the U.K. economy lower as they experienced the same things that America experienced: Hedge fund blow ups, banks struggling, housing prices falling, etc.
On the other hand, many other European banks didn’t have as much exposure to “sub-prime” as did the “financial epicenter”, the U.K.
So as these economies “de-linked” and continue to diverge, it’s produced a heck of an uptrend in the EUR/GBP pair. Click on the chart to enlarge it below.
Learn more about Forex Market News with ForexGen at http://www.forexgen.com/

ForexGen Explains What Drove the US Dollar to a Record Low

The dollar continued to remain under pressure as the trade deficit increased . Even though everyone was looking for the weaker dollar to help boost trade, I forecasted an increase in the deficit because the previous drop in the ISM manufacturing index told us that it would be weak (Forecasting News)
Jobless claims also dropped sharply but the improvement is primarily due to the Easter Calendar effect. I still expect claims for unemployment to rise especially since continuing claims remain at very high levels.
Not only is the US dollar trading at a record low against the Euro, but it also slipped below 7 Chinese Yuan. With this big psychological barrier breached, the G7’s criticism towards China’s currency regime will be limited.
Nothing has changed and if anything, ECB President Trichet has confirmed his hawkishness. US retail sales are due for release next week and with Linens ‘n Things joining Domain, Fortunoff, and Sharper Image in filing for bankruptcy protection, consumer spending will contract for another month. Crude oil and gasoline prices have also hit a record high which is going to hurt consumer spending further.
Learn more about Forex Market News with ForexGen at http://www.forexgen.com/

ForexGen Defines Forex

Unlike other financial markets that operate at a centralized location (i.e., the stock exchange), the worldwide Forex market does not have a central location. It is a global electronic network of banks, financial institutions and individual Forex traders, all involved in the buying and selling of national currencies. A major feature of the Forex market is that it operates 24 hours a day, corresponding to the opening and closing of financial centers in countries all across the world. At any time, in any location, there are buyers and sellers, making the Forex market the most liquid market in the world.
Read more…

Forexgen Client Services

We provide a full time assistance service to support our customer in dealing easily with ForexGen trader software. Even if you face any problem during downloading or setting up the software, we will help you overcoming it.
We provide the trader with full scale demonstrations and troubleshooting for technical problems.
Calling the dealing room is restricted to placing orders, no support or help desk issues are permitted to be placed through the dealing room numbers. These numbers are extremely busy and only attended by dealers who will not handle any other kind of issues.
Request call back.Please specify your details and comments or inquiry then we will contact you
We are committed to your privacy.
Live On-line Supportwe are available during trading hours on the Internet via Live Person Chat. Click here to initiate a conversation.
Visit our site at: www.forexgen.com

SWAP-FREE ACCOUNTS

ForexGen offers the swap-free accounts. Currency swaps will not apply to ForexGen accounts.
ForexGen will not charge a fee of per traded lot round turn. ForexGen will invoke this right in case of suspicion of abuse.
Stop, limit Order ExecutionOur dealing room always tries to execute top orders (sell stop, buy stop, sell limit and buy limit) at the indicated price unless in the market gaps where price changes at a sudden and it is impossible to fill you with the price that initially requested.Our dealers always try to fill you at the best price that can be achieved.Streamline DealingForexGen’s clients buy and sell without a request for quote and that means ForexGen provides streamline dealing and tries hard to avoid requotes.When clients try to take advantage of a wrong price quotes in the Market Watch, requotes take place.
Visit our site at: www.forexgen.com

Strategy tester

will enable the traders to apply more than one strategy for one or multi pairs and simulate these strategies in history to see the results of these strategies and try to tune its parameters to achieve its maximum profit and minimum loss.
The system offers reporting facilities to the traders to save the results of each applied strategy and their total profit/loss.
The strategy tester uses the following two components to carry out its process.
Validator
- Validates the prior used strategy to be applied on the historical data.
- Integrate with the optimizer to filtrate the pair’s loops generated by the optimizer.
- Accept ranges from different parameters to enable selecting the ideal setup to produce the maximum expected profit.
Verifier
- Scoring and ranking the time results from using the strategy.
- Providing the trader with feedbacks on different strategies performance.

Forexgen Purpose

• By going through all previous points, ForexGen reached to some certain findings that aim to give traders the possibility to participate in the Forex industry with potentials in actually gaining money form the market and not often losing, this can be done by introducing the concept of “Automated Trading System”.
• The goal of building this system is to replace the human involvement in trading and relieve the individual trader from the emotional, physical and psychological stresses of manual trading and the tedious monitoring responsibilities of running an expert advisor on a platform.
• The system offers huge capabilities for any kind of trader, it does not really matter if traders have an intensive experience and knowledge in the Forex markets or without any knowledge at all, the system will always tune it self to adapt traders who uses it, offering trading features far in excess of what human traders are capable of.
• The system offers traders an opportunity to trade the world currency markets 24 hours a day 5 days a week initiating trades on traders behalf according to the trader’s selected strategies in the signal entry and positions management, Utilizing an advanced and -state of the art- trading strategies that determines exactly where to buy and sell and how to maintain the opened positions.
Visit us at: www. Forexgen.com

Deposit Funds

ForexGen offers the easiest, simplest and fastest way of Forex funds depositing, withdrawing and transferring provided by 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 a 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. For full details about funding procedures and options kindly click here.
Please note that during the weekends and official holidays, wire transfers may be delayed.
Account receivable funding could electronically be funded by ForexGen in the same 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.
Visit our site at: http://www.forexgen.com/

Forex Trading Terms

ForexGen has some of the most competitive Forex trading terms on the market today! Learn more about each of our trading terms below.Minimum Initial Deposit – Open a live account with CMS with a low minimum initial deposit of $200.Universal Accounts – Unlike many Forex brokers, CMS Forex allows you to trade both mini (10,000) and standard (100,000) lots under a single account.Multi-Currency Accounts – Open an account in one of eight base currencies, allowing you to avoid exposure to exchange risk when depositing and withdrawing funds.No Commission† – CMS charges no commission on your trades; we are compensated by the Bid/Ask spread.Spread – CMS offers competitive fixed spreads on 19 currency pairs, even under volatile market conditions.Order Processing – We pride ourselves on fast, fair, and reliable order execution. We fill your orders at the best available market prices in seconds.Order Types – CMS Forex offers an array of effective order types that help you enter the market efficiently, manage your positions, and minimize losses.Rollover Interest Policy – CMS Forex pays and charges clients rollover interest at competitive rollover rates for all open mini and standard positions.
Interest on Unused Margin‡ – CMS Forex offers our clients the benefit of earning interest on unused margin for accounts greater than $10,000 USD.Leverage & Margin – CMS gives clients the opportunity to trade at a maximum leverage option of 400:1. Leverage may increase potential gains or losses on a given position.Margin Calls – We have a policy in place to protect you from losing more money than you have in your account by automatically closing out positions that activate a margin call. Hedging – Hedging a trade allows you to maintain both a long and a short position on the same currency pair at a given time, at no additional margin

ForexGen ShowsThe Importance of Keeping a Log

How many times have you read a book or a post telling you to keep a trading log. But you don’t. Or it isn’t consistent or some other excuse.The reason I believe that most traders don’t keep a log (remember most traders don’t make money either) is because it requires discipline. And it requires that you confront your trading - warts and all.I’ve posted a copy of today’s trading log for the ER2 and YM. You’ll notice that there are 2 trades that shouldn’t have been taken at all! Also you’ll note I calculate my average winner, average loser, and my winning %. That tells me my expectancy. Also all my profits and losses are denominated in R values (that’s risk values) not ticks or dollars. This keeps me honest. If I risk 20 ticks to make a 2 tick trade then I don’t get “rewarded” for that. However if I make a 20 tick trade with a risk of only 2 ticks then I do.By the way thanks to ForexGen for the inspiration for the grading system you see on this trading log. The idea is that for each of my trading components: 1) signal, 2) mechanics, 3) Position Sizing, 4) Trade Management, 5) and Exit mechanics I get a grade - just like school. Depending on how I handle each of those components. So at the end of the day I can quickly evaluate where my weak points were. Read more…

ForexGen Defines PIP

A point in Forex trading is referred to as a “pip”. It is the last decimal place of a price quote.Currency pairs are usually traded in standard Lots, which are equivalent to 100,000 units of the top currency in a pair. For example, 1 Lot of GBP/USD is eqivalant to 100,000 pounds. Standard lots can be traded in “mini” versions (0.1) and are equivalent to 10,000 units of the top currency pair.Since the currency that is on the top of the price quote changes, i.e. 1 Lot of GBP/USD (100,000 Pounds) is worth more than 1 Lot of USD/CAD (100,000 Dollars), the value of a pip changes. Also, the size of a position will affect how much each pip is worth.You can use our Pip Calculator to easily figure out how much each pip is worth for any pair, or size position. To learn more about contract sizes and the use of leverage, see this part of our Forex Course

The Mathematical Think-Tank with ForexGen

Cash exchange rates, an Over-The-Counter (OTC) instrument, has become an easy-profit tool for many private business ventures, calling themselves legitimate Forex brokers. However they promote it, the business model reeks.
Selling FantasiesEvery ad starts with some wild claims of something along the lines of “Make $5,000 a week sitting at home!”, “Easy money from Forex!”, or anything else with excessive amounts of exclamation marks, you get the drift. They entice people with fantasies where truth lies away in distance. Read more…

What is the truth with ForexGen?

Unlike centralized exchanges (e.g. NYSE, AMEX, CBOE, and etc.), OTC item prices settle upon agreement of two private parties, unregulated. The Forex brokers understand this and exploit it for profit.These bucket shops trade against the clients, i.e. they serve as market makers and more often than not take the other side of trades against clients. They understand statistically that most financial market traders perform with negative expectancies, hence making trading against a losing crowd profitable business. This aslo explains why they target and welcome financial industry newbies so much.What about the ones smart enough to eventually trade profitably? These brokers operate to preserve capital, and they resort to whatever means available and prevent consistent winnings off any client. Software disconnects, lagging/fraudulent price quotes, unfilled orders, or simply account banning have become some, certainly not all, common bucket-shop practices.The above explains why most Forex brokers have incentives for clients to lose, and hence not legitimate. It has given Foreign Exchange trading a bad name, though it can become lucrative still, just not through the typical bucket-shops.

Forex Hedge Funds with ForexGen

Hedge funds gained their popularity in the U.S. but foreign markets are starting to catch on to the idea. Hedge funds are known for their secrecy and exemption from regulatory rules. This investment vehicle moving overseas only makes it more attractive. There are however a few concerns when thinking about FOREX hedge funds.Even less regulatory oversightLess legal protection against lossesFor now mostly meant to attract U.S. investorsStill relatively new and untestedThis is not meant to completely discourage FOREX hedge fund investing but to make you aware of the potential risks involved. Hedge funds typically require hundreds of thousands of dollars in initial investments and that would be no small loss in a new trend scam if that’s what your first FOREX hedge fund investment turned out to be. Read more…

Trend Analysis and The Forex Market with ForexGen

Trend analysis is an indispensable function of the successful Forex trader. Just like a good mechanic or carpenter, having the right tools in your toolbox will make all the difference in your ability to break down trends and trade in the direction of established trends. Following are some essential Forex trend analysis tools to include in your toolbox: Mark the trends using trend linesUsing multiple chart compressions, decide on the overall direction.Use moving averages to distinguish trend direction. Read more…