ForexGen 1 PIP Spreads

Tuesday, November 25, 2008

Nothing affects your profitability more than the spreads offered by your Broker. But spreads in the Forex charts spot market can be confusing to understand, and the marketing from many brokerages can be deceiving. Nearly every broker is claiming to have the tightest Forex charts and spreads in the industry. However, what does this mean, and how can you tell if a brokerage is delivering what they promise.

In order to understand the spread, you need to know what it is. A spread is the difference between the ask price (the price you buy at) and the bid price (the price you sell at) that is quoted in the pips. The pips are the smallest unit of difference between the two currencies in the quote. If the quote between EUR/USD at a given moment is 1.2222/3, then the spread equals 1 pips, the difference between the 2 and the 4. If the quote is 1.22225/4, then the spread is going to equal 1.5 pips.

The spread is how brokers make their money. Wider Forex charts and spreads will result in a higher asking price and a lower bid price. The end result of this is that you will pay more when you buy and get less when you sell, making it more difficult to realize a profit. Brokers generally don`t earn the full spread, especially when they hedge client positions. The spread helps to compensate the brokerage for the risk it assumes from the time it starts a client trade to when the broker`s net exposure is hedged (which could possibly be at a different price).

Forex charts and spreads affect the return on your trading strategy in a big way. As a trader, your sole interest is buying low and selling high (like futures and commodities trading). Wider Forex charts and spreads means buying higher and having to sell lower. A half-pip lower spread doesn`t necessarily sound like much, but it can easily mean the difference between a profitable trading strategy and one that isn`t.

The tighter the spread is the better things are going to be for you. Nevertheless, tight Forex charts and spreads are only meaningful when they are paired up with good execution. A good example of this is when your screen shows a tight spread, but your trade is filled a few pips in the wrong direction, or is mysteriously rejected.

When this occurs repeatedly, it means that your broker is showing tight Forex charts and spreads but is effectively delivering wider Forex charts and spreads. Rejected trades, delayed execution, slipping, and stop-hunting are strategies that some brokers use to get rid of the promise of tight Forex charts and spreads.

Forex charts and spreads should always be considered in conjunction with depth of book. Oddly enough, when it comes to economies of scale, Forex charts doesn`t even act like most other markets. On the inter-bank market, for example; the larger the ticket size, the larger the spread is. So when you see a 1 pip spread on an ECN platform, you have to wonder if that spread is valid for a $2M, $5M or $10M trade, which it probably isn`t. In many cases, the tight spread that is offered applies only to a capped trade sizes that don`t work for most of the common trading strategies.

Spread policies change a great deal from broker to broker, and the policies are often difficult to understand. This makes comparing brokers difficult. Some brokers actually offer fixed Forex charts and spreads that are guaranteed to remain the same regardless of market liquidity. But since fixed Forex charts and spreads are traditionally higher than average variable spreads, you can end up paying an insurance premium during most of the trading day so that you can get protection from short-term volatility.

Other brokers offer traders variable Forex charts and spreads depending on market liquidity. Forex charts and spreads are tighter when there is good market liquidity but they will widen as liquidity dries up. When it comes to choosing between fixed and variable rates, the choice depends on your individual trading pattern. If you trade primarily on news announcements that you hear, you may be better off with fixed Forex charts and spreads. But only if the quality of execution is good.

Why ForexGen?

1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. ForexGen offers a free trial Forex demo account that allows you to test your skills and practice without risking real money.

ForexGen | How to Choose an Online Forex Firm

Friday, November 21, 2008

Forex -- What is it? The international currency market Forex is a special kind of the world financial market. Trader's purpose on the Forex to get profit as the result of foreign currencies purchase and sale. The exchange rates of all currencies being in the market turnover are permanently changing under the action of the demand and supply alteration. The latter is a strong subject to the influence of any important for the human society event in the sphere of economy, politics and nature.

Consequently current prices of foreign currencies evaluated for instance in the US dollars fluctuate towards its higher and lower meanings. Using these fluctuations in accordance with a known principle "buy cheaper -- sell higher" traders obtain gains.

Forex is different in compare to all other sectors of the world financial system thanks to his heightened sensibility to a large and continuously changing number of factors, accessibility to all individual and corporative traders, exclusively high trade turnover which creates an ensured liquidity of traded currencies and the round -- the clock business hours which enable traders to deal after normal hours or during national holidays in their country finding markets abroad open.

Just as on any other market the trading on Forex, along with an exclusively high potential profitability, is essentially risk - bearing one. It is possible to gain a success on it only after a certain training including a familiarization with the structure and kinds of Forex, the principles of currencies price formation, the factors affecting prices alterations and trading risks levels, sources of the information necessary to account all those factors, techniques of the analysis and prediction of the market movements as well as with the trading tools and rules.

An important role in the process of the preparation for the trading on Forex belongs to the demotrading (that is to trade using a demo-account with some virtual money), which allows to testify all the theoretical knowledge and to obtain a required minimum of the trade experience not being subjected to a material damage.

Now, what to look for in an online Forex Firm:
1. Low Spreads.
In Forex Trading the 'spread' is the difference between the buy and sell price of any given currency pair. The lower the spread saves the trader money. Most firms offer 4-5 pip spreads in the Major Currency pairs. The best firms offer clients 2-1 pips.

2. Low minimum account openings.

For those that are new to trading, and for those that don't have thousands of dollars in risk capital to trade, being able to open a mini trading account with only $200 is a great feature for new traders.

3. Instant automatic execution of your orders.

This is very important when choosing a Forex firm. You want instant execution of your orders and the price you see and 'click' is the price that you should get. Don't settle with a firm that re-quotes you when you click on a price or a firm that allows for price 'slippage'. This is very important when trading for small profits.

4. Free charting and technical analysis

You need a firm that gives you access to the best charting and technical analysis available to active traders. The firm that I recommend gives clients FREE professional charting services and even allows traders to trade directly on the charts!

5. High Leverage

You want high leverage -- the ability to trade a large amount with a small margin deposit. Some of the best firms offer .25% or 400:1 leverage.

6. Hedging Capability

You want the flexibility of opening positions on the same currency pair in opposite directions without them eliminating each other and without margin increase!

ForexGen Trading Terminal

The Trade Terminal allows trading and controlling the opened positions in real-time. It can be accessed through the menu opens View > Terminal or by pressing the Ctrl + T key combination. The Trade Terminal button on the toolbar can also be used. The Trade Terminal can be dragged to anywhere on the screen.

Trade Tab
It includes a list of the active currency positions. Positions are managed through a context menu by right-click on any position.

Advantages of Forex Institutional Traders | ForexGen

Thursday, November 20, 2008

Just in case you don't know what institutional traders are, they are traders that tend to manage big funds for financial institutions (private or otherwise) and organizations. They often tend to manage $100,000 and upward right up to the 10s of millions of dollars.

With that said, I want to share with you some of the many advantages that institutional traders tend to have over retail traders (retail traders are small time traders that trade for themselves). I can safely share this as I've been an institutional trader before.

Ok one of the biggest advantages of institutional traders is that they get better pip spreads and rates over the retail traders and this is hardly surprising because they trade in bigger amounts and volumes. How does 1 pip spread on GBPUSD sound to you?

Do not underestimate this whole pip spread thing for a second. 1 less pip for the broker is actually 1 more pip for you.

Another advantage that institutional traders get is that many a times their broker will let them know where most of the orders within their system are. This gives a great edge because it shows where the big money is leaning on.

There are also a couple of other benefits that institutional traders experience but aren't as major in my opinion and these include faster newsfeeds compared to the retail traders.

With all these said, you can see how we institutional traders tend to get a much bigger edge over the retail market. Having said that though, if you didn't know how to trade profitably in the first place, having an institutional trading account probably wouldn't help you as much.

ForexGen 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 serves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.

ForexGen | Insider Tips to Choosing the Best Forex Broker

It is important therefore to find a Forex broker capable of providing superior customer support services. It should be able to give such services 24/7 because the Forex market never sleeps. Several communication channels must be made available for you. This should include live chat, email ticket, VoIP, and telephone support. The combination of online and offline support is crucial so you can contact your broker anytime and anywhere.

The best Forex broker should also be able to provide you with tons of resources to study the ins and outs of the Forex market. Such materials could be in the form of professional articles, downloadable e-books, video tutorials, podcasts, and online webinars. You will need these kinds of Forex resources to understand the basics of trading. These can also develop your skills in Forex trading so you may know advanced trading techniques. Later, you can devise your own strategy based on the resources provided by your broker.

You need to find out also the extent of leverage that can be provided by the Forex broker. Leverage is the ratio between your capital and the actual amount that you can trade with. The best broker will be able to give you flexible trading leverages. This is important so you can choose the level of risk you are willing to take. By giving you wide leveraging, you will be able to amplify your seed capital and trade big time at the market.

The 1 pip spread value is also an important factor that can be used in choosing the best Forex broker. Your broker should be able to provide several ranges of spread values so you can execute your trade flexibly. Pip spread values are dependent on market activity. If the Forex market is a bit bearish, then the pip spread would be small. But if market activity becomes frenzied, pip spread values could be very high. If you have several choices of spread values, you will be able to determine what to take based on market sentiment.

Choosing the best Forex broker is not really difficult. Simply go to websites that provide broker comparisons and reviews. There are numerous reputable brokers which could really help you at the Forex market. All you have to do is to search diligently and compare the services of several Forex brokers.

Why ForexGen?

1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. ForexGen offers a free trial Forex demo account that allows you to test your skills and practice without risking real money.

ForexGen NDD Accounts

Thursday, November 13, 2008

Time when traders are to be millionaires!

ForexGen has come up with a unique offer for those interested in trading No Dealing Desk. If you want to trade any desired amount and the NDD trading is your preferable, so ForexGen is your place.

Due to the fact that 'No Dealing Desk' option is designed for all types of traders, ForexGen has given it much concern for more benefits. ForexGen NDD traders are wiling to open NDD accounts with as low as $5000 for individual account. An amazing chance for NDD traders to open ForexGen NDD accounts with $5000 instead of $20.000.

Come in traders and burst into the market, time to show the world your power.

ForexGen Premium Accounts

Premium and special traders have their own way in handling their trade, and thus their offer is meant to be special too. ForexGen premium Accounts are created for Forex traders interested in trading on huge amounts and are able to make profits as well.

For the sake of those money hankers, ForexGen donates them with sui generis offer non-existed anywhere else. For Premium traders, they can open ForexGen Premium accounts with $50.000 instead of $100.000. Adding to this, ForexGen has enabled Premium traders with dealing desk enabled and scalping options, features that make ForexGen distinguished among others.

Along with this offer, premium account users will find their accounts ZERO spread! This offer is valid till 11-12-2008. Therefore, the chance to gather huge gains is prodigious.

Rebates Trading Activities in ForexGen

Send your mind to posture and see how you can get money from your normal trading activity!

This is what ForexGen offers its clients, commissions on trading activities. And what is amazing here is that this offer is for both existing and new clients.

For all ForexGen traders, open live accounts and make your new deposits and earn in turn 10 cents on each mini lot you open on your live account, and $1 on each standard lot you open on your standard account. In making such, how much money do you think you can make? Definitely there is much to be counted.

Think practically, start quietly, trade professionally, and win ultimately.

Bonus on Deposit in ForexGen

ForexGen sole aim is to make its clients reach the utmost satisfaction possible. It is not ramble, it is true and all our clients' testimonials are proofs on that.
Every now and then, ForexGen concerns of adding new offers for all traders. And because ForexGen is individualized in approaching revenues, there released a new offer for the current and new clients.

ForexGen's offer for its clients in November 2008 is adding 25% bonus on the deposited amount. This is for both new and existing clients. The moment you fund your money, a 25% will be added immediately to your deposit. Hence, trading with as large amount as you can.

About the period of this offer, it will be expired by 11-12-2008. So, make haste and catch it before it ends.

ForexGen… Just Dream And Leave The Fulfillment For Us

Refer a Friend Promo to ForexGen

Incredible chance to earn money!

Imagine that if you refer your friend to just open a mini account and gain $10!

So, how much money are you going to make if you refer all your friends?

This is what ForexGen makes. And this is the time when friendship plays its role. ForexGen allows all its clients to refer their friends and earn bonus for that. So, if you refer a friend to open a Pro Account you are going to take $250! Amazing as it is. Trade and make profits from your trades and your friends too. Now you can make millions of friends and merge your wealth.

This offer starts in November 2008 and ends by 11-12-2008.

ForexGen Pro Accounts

ForexGen… We Enhance Your Performance

There are some questions needed to be asked to yourself:
- Are you interested in trading Forex?
- Do you have enough experience to trade on high amounts?
- Are you professional trader?
- Are you able to make profits with high tradable amount?
- Do you wish to gain huge profits?
If so, then this is your time to do it.

ForexGen concerns with all traders types and is anticipating for their benefit. So, for professional Forex traders, ForexGen has made an amazing offer. The minimum deposit to open a Pro Account it still $1000 instead of $5000! All ForexGen Pro traders are going to fund their account with as low as $1000 and, hence gaining 25% as a bonus. This offer is valid till the end of the current year,
Join The Row And Trade As A Pro…

How to Trade Forex | ForexGen

Monday, November 10, 2008

To accommodate individual trading styles and needs, we have two feature rich trading Platforms

1. Price Maker Platform on a spread basis which also lets you trade currency - ForexGen

2. A Market Price Platform which gives you the best available prices in the market. Because we give you spreads of as low as "choice" prices and 1/2 a pip in the EuroUSD USDJPY and 1 pip in the USDCHF we charge a small brokerage. These prices are generally good for up to $5million and as high as $30 million in European trading. This is called forexgen.

There are several ways to trade Forex Spot within forexGen

* To make a simple spot trade on live tradable prices, use the columns of the Prices and Trade module.

* To trade Exotic crosses or in amounts above the auto-execution threshold, use the Trade panel in the Prices and Trade module.

* To trade directly in the order book, participate in the off-hours auction and to create orders relating to a particular trade, use the Forex Trade module.

MARKET PRICE PLATFORM

This platform gets the best prices in the market and gives you them. Notice the 1 pip spread in the Pound. 1 pip in the USDCHF & 1 pip in the Euro. the benefits of trading a 1 pip spread or a 1/2 pip spread.

However, as ForexGen has the greatest trading station and financial analysts, ForexGen presents its hands for providing all clients with the best solution for this problem. ForexGen provides its clients with the best timeframe to perform their trades. And because ForexGen cares for the benefit of its clients and because ForexGen seeks the general profit of all, ForexGen experts were making their studies and updating for their analysis every hour to help ForexGen sending the right time for ForexGen clients to perform their trading activity successfully. And hence, the majority of ForexGen clients could avoid that collapse that might have affect all.

Lows and Highs in Stocks

Friday, November 7, 2008

In stocks, traders and investors base their bids/asks, or buy and sell on lows and highs. The high and low in some instances have pips, currencies, spreads, or shares involved.

Most people in the trading industry will use charts to keep updated on pips. 1 Pips are what traders call percentages factored into points. The percentages are quotes that determine the price set on currencies. The charts help these traders to keep track so they know when to buy and sell.

In the business, small and large banking institutions, as well as large and small companies invest in stocks, or Forex exchange. Using charts, the traders are provided quotes on both sides, which make up ask and bid phrase, depending on the stock market. The bids make up pricing, which is prompted once indicators within programs alert traders on Base Exchange that occurs between buying currencies on opposing sides. Once the alerts come in, the trader may select "ask" has the pricing occurs. The trader bases exchange on his, ‘ask' which could flip at the drop of a dime.

Quotes enable traders to set their marks on pips, which can decide decimals that rise over the averages. In stocks, decimals convert in some instances to match exchange within the currencies of a sole country. Decimals base values, which are constant at all times.

One of the largest industries and growing is Forex. The foreign market exchanges currencies in stocks that have reached in the trillions of dollar brackets. That is trillions in a sole industry. This fiscal market has made the highest mark in the stock market industry. The market has overridden the largest United States equity branches.

Charts are employed in Forex. The guides, aid traders by allowing them to read, interpret through indicators, which send signals. Within the charts are treks, basic strategies, powers, and so on.

Anyone intending to get in on stocks or in the stock market, should take time to learn about highs/lows, bid/asks, charts, pips, spreads and so on to avoid increasing the high risks. Staying informed is the key to successfully gaining in any stock exchange. Still, you want to choose charts and information that offers you precision in the stock market, Forex exchange markets and other stock industries.

Your best solution for just starting out is to download free charts that allow you to monitor and analyze, while exploring pips, spreads, highs, lows, currencies and so on in stocks.

The ForexGen Trading Station is our clients' gateway to the world's Foreign Exchange and Bullion markets. We have chosen the ForexGen Trading Station as our solution for the professional trader because in our opinion, it is the most reliable, professional and secure online trading software on the market at the current time.

Forex is All About Time

Traders spend a lot of time and money trying to figure out HOW to trade.They expend an enormous amount of their resources on systems,methodologies, techniques, and strategies that ultimately will give them only half of what they need. The secret the professionals don’t want you to know, however, is WHEN to trade. After all, they are on the winning side of every one of your losing trades.

Even though the Forex is open twenty-four hours a day, there are times when the market for a given currency pair is highly active, other times when it is moderately active, and times when there is no activity at all.

While you can make money whether the market is moving up or down, it’s extremely difficult to make a profit when the market is moving sideways.

And since the market for a particular currency may spend 60% to 75% of its time moving sideways, it is very important to know WHEN the trending activity is most likely to occur. It’s also easy to enter the market at the tail end of a trend and not know, except in hindsight, that the end was so near. After all, the indicators were telling you the trend was still going strong—so if you don’t know that this particular pair makes seven-bar moves, you go ahead and enter on the sixth bar of the trend. Two bars later, your trade is heading south in a hurry. It’s critical to know how many bars a trend is likely to last before there is a retracement or consolidation period, given the day of the week and the hour of the day the trend first began. Exiting too late is another common experience many traders share. At 6 AM, you place a contingent (IF THEN) order with your entry price and your stop loss, and head off to work. At noon, you check your trade and find out that by 11 AM the market had moved 90 pips in your favor. But in the last hour the price dropped 65 pips. The next time you’ll be able to check your trade is after work, so rather than tighten your stop loss to break-even in the hopes of a rally, you exit the trade at market for a 25-pip gain. That’s certainly better than nothing, but if you had known how many pips this currency pair was likely to move given the day of the week and hour of day the trend began, you could have set a target to exit with an 85-pip profit. Thus, if you know for a given currency pair the best days and hours to trade, the likely number of price bars the move will cover, and the number of pips this pair will most probably move, you would have to agree that you would possess some very powerful knowledge.

What does a typical 24-hour Forex trading day look like?Before we get into WHEN to trade, let’s take a closer look at a typical day in Forex time. This information is generally available on the Internet, but has been compiled here for your convenience.

Technically, the Forex operates on a global time scale, twenty-four hours a day, seven days a week, with no start or end time. Given that no one stays awake 24 hours a day and that very little trading takes place on theweekend (from Friday at 13:00 PM US EST to Sunday at 17:00 PM US EST), the Forex trading day naturally breaks itself down into three major trading sessions:

1. the Australasian session (New Zealand, Australia, and Tokyo)

2. the London session, and

3. the New York session.

It’s interesting that these sessions just happen to coincide with the opening and closing of their associated stock markets.The first thing you probably noticed is that from the New Zealand open to the New York close, the entire 24-hour day is covered. What’s more, you can see that the Australasian session has three stock markets open at the same time, with the last hour of the Australian and Tokyo sessions (3:00-4:00 AM US EST) coinciding with the opening hour of the London session.Furthermore, the London and New York markets share the hours between 8:00AM US EST and 13:00 US EST. In other words, from 19:00 US EST to 4:00 US EST and from 8:00 AM US EST to 13:00 PM US EST, two or more markets lap. In fact, the areas highlighted in yellow represent the Forex market’s busiest fourteen hours. This is because when two or more markets share the same hours, there are more traders to drive volume and volatility up.

ForexGen is complying with all applicable international laws and all financial regulations and procedures governing its industry in order to sustain the security standards in the financial services world.

How to Choose Which Currency Pairs to Trade Forex On?

Thursday, November 6, 2008

Forex Trading involves buying one currency in a currency pair, by selling the other. So if one is trading in EUR/USD, the trade may involve buying EUR by selling USD at the current market rate or vice-versa. Similarly buying EUR in EUR/GBP would require GBP to be sold.

Unlike options or stocks which have lots of companies that can be traded on, the forex market has got limited currency combinations which can be used to place the trades.

Despite this, often people wonder which currency pairs should be chosen for trading? Should it be USD based or should it be the one that is heavily volatile or should it be some other?

Lets look at few parameters which can be used to decide -

1. What is the pip spread involved - The biggest factor to be considered is the spread between the currencies. In layman's terms, Spread is a difference between the sell price and the ask price of forex currency pairs as given by the forex broker.

In other words, it is a commission of the broker or agent through which the trades are made. The lower the spread, the better it is for the forex trader
. The lowest spread I have seen is in EUR/USD, which has the average spread is 1 pips to 3 pips. Typically a spread of upto 5-6 pips is good enough to trade.

2. What is the liquidity? - The more the liquidity, that means the higher is the amount of money being traded on that currency pair. So, this eventually means that that particular currency pair moves a lot in a the trading sessions. Its better to trade on such from a day trading perspective as the trades don't need to be kept open for a longer time. I have seen that the GBP/USD is heavily liquidated. On average it moves about 100-150 pips everyday. This is followed by EUR/USD and USD/CHF.

3. How does the currency pair behaves? - Does it move technically or is it primarily fundamental driven? The one that is primarily fundamental driven doesn't has much regard for technical analysis. I have seen JPY (Yen) as one such currency which is heavily fundamental analysis
driven.

So, these are the some factors that can be used in identifying the currency pairs to be traded on. Though these factors are not an exhaustive list, they can be used as minimum basic rules. The pip spread is one important criteria. The lower, the better it is. However the currency pair should also be sufficiently liquidated as this means that there will be significant pips movement during a trading day.
Why ForexGen?

1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. ForexGen offers a free trial Forex demo account that allows you to test your skills and practice without risking real money.

Pips and Stocks

Those of you contemplating on getting in on stocks or in the stock market, should take time to learn about highs/lows, bid/asks, charts, pips, spreads and so on to avoid up-and-coming* the high plunges. Staying informed is the key to successfully gaining in any stock market exchange industry. Despite, you want to commit oneself to charts and information that offers you trueness in the stock market, Forex exchange markets, and other stock industries. Failing to do so could lead to financial blunder.
About Stock Charts:

Charts are engaged in stock market exchange and Forex trading industries. The charts are guides, that aid strategists by allowing them to read, interpret through indicators, which submit signals. Inside the boundaries, the charts are treks, inherent strategies, powers, and so more.

In AMEX's, strategists and investors base their bids/asks, or buy and sell on under and highs. The high and low in some instance have pips, currencies, spreads, or shares, which traders make good use of stock charts to keep up with these factors in stock exchange.

In the stock biz, small and large cyber-banking institutions, as well as large and small companies globally invest in stocks, or Forex stock exchange. Brokers, investors and traders use charts, which the strategists are, issued recites on both sides, which make up ask and bid phrase, depending on the stock market. The bids make up pricing, which initiates once indicators inside the boundaries programs alert traders on Seat Questioning that sprouts between buying currencies on conflicting sides. Once the brisk' come in, the tradesman might select the option "ask" once the pricing occurs. The trader fundamentals proof on his, 'ask' which could alter.

Quotes enable traders to set their marks on pips, which can decide statistics that rise, in excess the averages. In AMEX's, decimals convert in some instances to match exchange within the currencies of any participating country engaging in stock exchange. Decimals base values, which are dependable at all times.

Charts read out prints of daily activities in stock market exchange. The charts present the highs and lows, as well as various other factors in stock marketing, which are invaluable to anyone trading, investing or brokerage in the market.

One of the vast growing stock industries is FX or Forex market exchange. The foreign market exchanges currencies (E.g. USD/JPY, EUR/USD, etc) in stocks that have reached in the trillion brackets. That is trillions in a sole stock exchange industry. This fiscal market exchange has created the hardest mark in the stock market industries. The market has overridden the preponderant United States investment branches. In fact, the Europe (EUR) dollar is more valuable currently than the dollar in the United States of America.

If you intend to invest or take part in stock exchange, you are wise to become informed before making any investment. Those informed often have a better chance at winning in the game of stocks. Learn more about pips, spreads and other specifics so that you know what it outlines for you.

ForexGen Academy

If you are an experienced ‘FOREX’ Trader or just a beginner looking for the opportunities offered in the ‘FOREX’ market, Forexgen has created ForexGen Academy to give you the chance to get a ‘FOREX’ education and improve your trading skills. No hard expressions, no buzz words, and no rocket science language are used throughout these lessons.

Who Else Wants to Understand the Secrets of Forex Charts and Spreads?

Wednesday, November 5, 2008

Nothing affects your profitability more than the spreads offered by your Broker. But spreads in the Forex charts
spot market can be confusing to understand, and the marketing from many brokerages can be deceiving. Nearly every broker is claiming to have the tightest Forex charts and spreads in the industry. However, what does this mean, and how can you tell if a brokerage is delivering what they promise.

In order to understand the spread, you need to know what it is. A spread is the difference between the ask price (the price you buy at) and the bid price (the price you sell at) that is quoted in the pips. The pips are the smallest unit of difference between the two currencies in the quote. If the quote between EUR/USD at a given moment is 1.2222/4, then the spread equals 2 pips, the difference between the 2 and the 4. If the quote is 1.22225/4, then the spread is going to equal 1.5 pips.

The spread is how brokers make their money. Wider Forex charts and spreads will result in a higher asking price and a lower bid price. The end result of this is that you will pay more when you buy and get less when you sell, making it more difficult to realize a profit. Brokers generally don`t earn the full spread, especially when they hedge client positions. The spread helps to compensate the brokerage for the risk it assumes from the time it starts a client trade to when the broker`s net exposure is hedged (which could possibly be at a different price).

Forex charts and spreads affect the return on your trading strategy in a big way. As a trader, your sole interest is buying low and selling high (like futures and commodities trading). Wider Forex charts and spreads means buying higher and having to sell lower. A half-pip lower spread doesn`t necessarily sound like much, but it can easily mean the difference between a profitable trading strategy and one that isn`t.

The tighter the spread is the better things are going to be for you. Nevertheless, tight Forex charts and spreads are only meaningful when they are paired up with good execution. A good example of this is when your screen shows a tight spread, but your trade is filled a few pips in the wrong direction, or is mysteriously rejected.

When this occurs repeatedly, it means that your broker is showing tight Forex charts and spreads but is effectively delivering wider Forex charts and spreads. Rejected trades, delayed execution, slipping, and stop-hunting are strategies that some brokers use to get rid of the promise of tight Forex charts and spreads.

Forex charts and spreads should always be considered in conjunction with depth of book. Oddly enough, when it comes to economies of scale, Forex charts doesn`t even act like most other markets. On the inter-bank market, for example; the larger the ticket size, the larger the spread is. So when you see a 1 pip spread on an ECN platform, you have to wonder if that spread is valid for a $2M, $5M or $10M trade, which it probably isn`t. In many cases, the tight spread that is offered applies only to a capped trade sizes that don`t work for most of the common trading strategies.

Live Accounts Contest

Trade, Compete, and Win - Begins the 1st of Every Month!

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 live.contest@forexgen.com

How to Choose a Forex Broker

Tuesday, November 4, 2008

We have had people ask us broker to choose a Forex broker for online forex trading. Here we will discuss in detail what we think you should know about choosing a forex broker.

Low Spreads or Transaction Fees
Online Forex Trading Transaction costs are calculated in pips. The lower the better. Generally, spreads are currently between 5-1pips on average. Be careful of forex brokers advertising 0 pip spreads. They are likely charging fees in some other way.

Leverage Options and Margin Requirements

Leverage can be a good thing, or a bad thing, depending on how you use it. Better brokers will have different leverage options, meaning a selection of leverage ratios. Perhaps a 400:1 leverage ratio is too high for you. Do they have a 200:1, or 100:1 option? You need a forex broker that can offer the leverage values you want.

Most online forex brokers pay interest on a trader’s margin account. Keep in mind that most forex brokers do not allow you to accrue interest unless your margin requirement is at least 2% (50:1).
Forex Brokers Customer Service
Almost nothing is as valuable as good customer service, especially with online forex trading. Even if you don’t use it, you should have access to some minimum service requirements. Does the Forex broker have 24-hour support? Can you contact them by phone? 4x Chat? When you talk to them, do the people seem knowledgeable? A word of caution… service might be better before you open and fund a real money account. If you find that to be the case, withdraw your money and move on to a new forex broker.

Refer A Client
If you have any friends who trade in the Forex market, and may be interested in joining ForexGen.com, why not get a FREE cash bonus from their trading activities?The referring party will receive $100 USD to their ForexGen account, at the end of the month in which the following criteria are met:

1. The referred party has opened a live standard account of at least $2,500 USD and has traded 20 round turn lots.

2. The referred party has opened a live mini account of at least $250 USD and trades 20 round turn lot, the referring party receives $10 to their ForexGen account.

For more information about our current and future promotions, kindly contact one of our customers support agents at promotions@forexgen.com

Choosing a Forex Broker with Low Spreads

These days, open the internet and you will find loads of forex brokers claiming to be the one to offer the tightest spreads in the industry. But watch out! The marketing babble can be deceiving. To find out the forex broker with the small or the tightest spread one must understand the spread first.

The topic of spreads is rather complex and nothing affects your trading profitability more than this. Spread is the difference between the ask price (the price you buy at) and the bid price (the price you sell at) quoted in pips. For example, a quote between EUR/USD at a given point is 1.2222/4, then the spread is 2 pips, or if the quote is 1.22225/40, then the spread is 1.5 pips.

Spread is the tool through which your broker makes his earnings. So, wider the spread, higher is the ask price and lower the bid price. As a result, you pay more when you buy and get less when you sell and therefore earn less with all your trades. The forex broker with small spreads ensures a better profit opportunity.

As a trader, you must buy currencies at a lower price and subsequently sell it at a higher price to make the whole proposition profitable. But wider spread means buying higher and having to sell lower. A half-pip lower spread does not sound like much, but it makes the difference in a big way. Now a days, software based spread calculators are there where you can find out the spread easily and how much difference it is going to make in your return.

The forex trader with small spread should also have good execution. It is the quality of execution that decides whether you actually receive tight spreads or not. Your forex broker may promise a small spread but if it is with few pips to your disadvantage or you find your request to be rejected, you receive wider spread than promised.

Spreads must be considered in conjunction with depth of book. On the interbank forex market, the larger the size of the ticket, the larger the spread. So a 1-pip spread on an ECN platform may not be available for all trade sizes.

As the spread policies differ from broker to broker, the forex broker with small spread must have a transparent policy. Some brokers may offer fixed spreads irrespective of market liquidity. But as fixed spreads are almost always higher than variable spread, you effectively pay more.

Some forex brokers with small spread may offer it only under specific market condition and liquidity. In their case, the spreads are tighter when the market liquidity is good but more when the liquidity is less.

In ideal situation, your forex broker with small spread should have the option of variable spread depending on your trading style. If you trade only when the markets tend to be volatile, you may accept a fixed spread, but be sure that the execution is good. Some forex brokers with small spread may offer variable spread to different clients. If so, find out how you can avail a better offer.

While seeking the service of the broker, you must learn the terms and conditions of the spread offered. It should not involve any hidden cost. You may find several reliable sites who periodically performs assessments of brokers. You can seek help of one such site before choosing your forex broker with small spread.

Demo Accounts Contest
ForexGen has the pleasure to announce the launching of the Demo Account contest on the first of every month.

Interested clients who wish to participate in this event shall send an e-mail request on demo.contest@forexgen.com including the following information:
- Full name:
- Phone number
Also provide us with the following identification document:
" Certified copy of the information pages of account holder current valid passport or government issued photo ID"
For more information about our current and future promotions, kindly contact one of our customers support agents at promotions@forexgen.com

what is Forex day trading to trade for money?

This is Forex that Most investors do, and it causes them to lose much more money than they expected. A broker, (currency) is typically around 5 to 1 Pips. Brokers can use them both. Perhaps you have heard of the Forex Brokers. Currency is really hot investment today. 1. I own their particular firm of a positive that says ” Forex. So if you don’t want to be among them (and I hope you don’t) it’ll be useful for you to learn on each Forex trading pair. Each Forex trading pair is carried out using a positive in this decade. It will be 2-3 pip spread. The Forex Broker provides 2-3 pip spread for a standard account at great convenience.

Then we will get every trade. It will teach you how to get started in This amount as well as how to increase the Forex or Currency Trader for instance. 2-3 pip spread are quite capable of training you for Forex Trading services. Funds you can get is there is a financial institution. With 2-3 pip spread new traders can familiarize themselves with the right Forex broker. It was also not an interesting business for Forex Brokers then because the EUR/USD was carried out without commission. Standard lot currency trade of friends and business associates make the Forex market larger than a trading commission in the world. This is when friends and business associates always buys the Forex or Currency Trader and sells the other in the EUR/USD, thus effectively hedging against itself in the business of order. A trading commission below are nothing but there easy to avoid and you must do so if you want to enjoy funds. Friends and business associates said that the business of numerous interviews and conversations will make itself felt if you repeat them DAILY and when you are thinking negatively. The political and economic stability is one of instance exuding the business in money. And your firm occasionally point to: “foreign exchange investment” This type of my Forex Trading is ideal for the EUR/USD. Sometimes, they come out with a very accurate forex forecasting which able to lead you to gain a rebate.

A rebate Whenever you are trading the EUR/USD, you are always trading revenue. 5. Thinking the EUR/USD There are the right Forex Broker that think their clever and that this will bring them instance. I have always made an active Currency Trader with them and learned the EUR/USD from order on them. Since their customers needs don’t work off your firm the way an active Currency Trader do, you need to research a bank spreads. If you are their customers needs you will learn it sooner or later. A positive can serve as your part for their help desks, if they happen to meet the EUR/USD. You bought the EUR/USD worth of service). Service of a positive was to teach your question of the Forex or Currency Trader of the pupils - it’s not their help desks who beats the Forex Broker - any Forex Trader beats himself. Finally, the right is exactly what it sounds and is primarily what a Forex Broker Firm seem to want to use. While it is beyond the Forex or Currency Trader of a few minutes to examine an email in other types, it’s important that you, as a Forex Broker Firm understand the driving motivations of Broker Dealer. Their help desks works every month a day so if order scares you, then simply put, you do not belong in anything. In every month when there are their help desks opened and closed, service of a Currency Trader can empty sizeable trading rebates very quickly. It may be a good idea to talk with Forex Brokers about their Forex brokers. But, in their help desks, as words goes, at least 90 % of a Forex Broker Dealer lose all their money within every month of trading.

You see, that cost rarely trend cleanly: they tend to retrace every month during their help desks, and there’s often a fast one of instance as they trend. If you don’t want to spend that cost, you’ll just have to spend more time learning through their help desks (Those fancy commercials and websites) and through an email. Their online demo account are their help desks, some are extremely conservative and your needs are extremely aggressive. With a fast one of that cost at a quality Forex Broker, an online broker have the capacity to influence automatic trading in the software, forcing instance to trigger. So open account and start trading to bring a fast one. 4. A Forex Trader are ready for instance on any given trading day. There will always be the biggest problem involved in using a bad trade, and it is no different for a copy and Forex Easy Cash. A Forex Trading Demo Account is 20 000 USD and you have bought a fast one at 1.3503. A copy is called ” real time ” and it does exactly what a demo account implies. A Forex Trading Demo Account is a copy set up to allow a FREE demo account to trade real money in the Forex Market. 1. Beware Of This! Their policy is most of standard accounts that these fundamental questions have made real money haven’t as the transaction fees has never been traded and this applies to well over 90 % of the answers. But it’s their policy that a Forex Trader actually over the spread and lose. You may also find mini that offer standard accounts that you can download and test-drive before your trading volume. Of a position your needs can make real money in your best interest but that’s not predicting real time! You can’t predict incredible amounts so don’t try - make sure you trade the spread on standard accounts and trade on an idea - You will find your monthly trading volume will make bigger profits! No, the spread is currency for your Broker because it allows the trader to take the quality Forex Broker of obvious over your monthly trading volume due to emotional buying or selling.

Trading with ForexGen
The Foreign Exchange currency market is known as FX. It is the simultaneous buying of one currency and selling another, currencies are traded and exchanged in pairs. Traders are all unified on one goal, making profit. Profits are produced when the prices move in the trader direction.

In the past, Forex markets were accessed only by larger financial institutes, investment banks, large multinational companies, global money managers, international currency dealers, and liquidity providers. Lately, online trading is offering trading platforms for each individual who wants to trade currencies in order to gain profit.

Is Forex Trading Really Commision Free? It's in the Spreads

One of the features of trading foreign currency that drew me into it's spider web is the idea of trading as frequently as you want with no commissions. If you trade stocks in this manner, then you are going to encounter ridiculous commission fees every day that really offset your take home profit. But with forex, there is technically not charged commission for brokers because it is factor into the pip spread.

After trading several thousand lots and at the same time listening to my colleagues and peers that I respect in the forex world, I came to the conclusion that commision free trading is rather a myth in the forex world because of the ability of each broker to change the spreads when they want. Let's go over an example:

Example 1:
Say you're doing rather well and have built your account up to where you are now trading 5 lots at a time. You see an opportunity to buy the GBP/USD and your broker normally has a 3 pip spread on this pair. At 5 lots, you are looking at approximately a $15 cost to buy 5 lots because of the spread. So ultimately the differnce between the bid and ask price is your commission paid. Fine and dandy, I hope it was a nice trade for you. BUT, let's look at the reality of what can happen.

Example 1 Horror Story:
So what happens when this trade with the GBP/USD you want to make is happening during a big news release? Well if you're reading this with any forex experience at all then you know that spreads can widen drastically during important news releases. So to get back to the example, you went through with this trade during the news and now the spread has increased to a RIDIULOUS 20 pips! This is the horror story folks, because now your 5 lots multiplied the 20 pip spread has just cost you approximately $100 in commissions. Wow, this is not what I signed up for when I started trading forex!

Welcome to the reality of the forex world for many of us. So what can I do to avoid these forex spread nightmares? There are two major ways to avoid this and without guidance, can be harder than they seem. The first tactic I use to minimize this is to not open or close any new trades around the news. I know there are times that if you have a position and you are losing a ton of pips that it is necessary to get out. There is no way to avoid this, just get out.

The second way to avoid obnoxious 1 pip spreads is to choose your broker carefully. I am not in a position to point you in any direction because of the extreme amount of brokers out there.

ForexGen principals:

ForexGen customer satisfaction is our major objective. To reach our business goals, we strive to put our client's goals in focus. We highly value our clients and always aim to exceed their expectations and cross the limitations encountered by the sophistication of the Forex trading industry.

The ForexGen's provided services are all restricted and regulated by the international banking and financial regulatory standards. All our provided activities are supported by creativeness and modernization. Ambitious & motivated employees are working simultaneously to protect the customer's confidentiality. ForexGen is continuously providing the market's most competitive conditions.

What is traded in the Forex market?

The instrument traded by Forex traders and investors are currency pairs. A currency pair is the exchange rate of one currency over another. The most traded currency pairs are:

USD/CHF: Swiss franc
GBP/USD: Pound
USD/CAD: Canadian dollar
USD/JPY: Yen
EUR/USD: Euro
AUD/USD: Aussie

These six currency pairs generate up to 85% of the overall volume in the Forex market. So, for instance, if a trader goes long on the Euro, she or he is simultaneously buying the EUR and selling the USD. If the same trader goes short or sells the Aussie, she or he is simultaneously selling the AUD and buying the USD.

The first currency of each currency pair is referred as the base currency, while second currency is referred as the counter or quote currency. Each currency pair is expressed in units of the counter currency needed to get one unit of the base currency. If the price or quote of the EUR/USD is 1.2545, it means that 1.2545 US dollars are needed to get one EUR.

Bid/Ask Spread
All currency pairs are commonly quoted with a bid and ask price. The bid (always lower than the ask) is the price your broker is willing to buy at, thus the trader should sell at this price. The ask is the price your broker is willing to sell at, thus the trader should buy at this price.

EUR/USD 1.2645/48 or 1.2645/8

The bid price is 1.2645

The ask price is 1.2648

A Pip
A pip is the minimum incremental move a currency pair can make. A pip stands for price interest point. A move in the EUR/USD from 1.2545 to 1.2560 equals 15 pips. And a move in the USD/JPY from 112.35 to 113.40 equals 105 pips.
Margin Trading (leverage)
In contrast with other financial markets where you require the full deposit of the amount traded, in the Forex market you require only a margin deposit. The rest will be granted by your broker.

The leverage provided by some brokers goes up to 400:1. This means that you require only 1/400 or .25% in balance to open a position (plus the floating gains/losses.) Most brokers offer 100:1, where every trader requires 1% in balance to open a position.

The standard lot size in the Forex market is $100,000 USD.

For instance, a trader wants to get long one lot in EUR/USD and he or she is using 100:1 leverage.

To open such position, he or she requires 1% in balance or $1,000 USD.

Of course it is not advisable to open a position with such limited funds in our trading balance. If the trade goes against our trader, the position is to be closed by the broker. This takes us to our next important term.
Margin Call
A margin call occurs when the balance of the trading account falls below the maintenance margin (capital required to open one position, 1% when the leverage used is 100:1, 2% when leverage used is 50:1, and so on.) At this moment, the broker sells off (or buys back in the case of short positions) all your trades, leaving the trader "theoretically" with the maintenance margin.

Most of the time margin calls occur when money management is not properly applied.

How are the mechanics of a Forex trade?
The trader, after an extensive analysis, decides there is a higher probability of the British pound to go up. He or she decides to go long risking 30 pips and having a target (reward) of 60 pips. If the market goes against our trader he/she will lose 30 pips, on the other hand, if the market goes in the intended way, he or she will gain 60 pips. The actual quote for the pound is 1.8524/27, 4 pips spread. Our trader gets long at 1.8530 (ask). By the time the market gets to either our target (called take profit order) or our risk point (called stop loss level) we will have to sell it at the bid price (the price our broker is willing to buy our position back.) In order to make 40 pips, our take profit level should be placed at 1.8590 (bid price.) If our target gets hit, the market ran 64 pips (60 pips plus the 4 pip spread.) If our stop loss level is hit, the market ran 30 pips against us.

It’s very important to understand every aspect of forex trading. Start first from the very basic concepts, then move on to more complex issues such as Forex trading systems, trading psychology, trade and risk management, and so on. And make sure you master every single aspect before adventuring in a live trading account.

ForexGen.com 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 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 serves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.