Trading Secrets With Brokers: forexgen

Showing posts with label forexgen. Show all posts

Sunday, January 11, 2009

Euro Pulls Back from Resistance

Declines Likely Ahead of ECB Rate Decision

The euro fell versus all of the major currencies on Friday, despite the fact data showed that retail sales growth in the Euro-zone actually rose 0.6 percent during the month of November. However, it is important to note that the annual rate was still negative for the sixth straight month at -1.5 percent, indicating that the economic situation remains dour.

When taking this into considering with the decline in Euro-zone CPI estimates below the European Central Bank’s 2.0 percent target, steady increases in unemployment, and increasingly pessimistic consumer and business confidence, it seems increasingly likely that the central bank will do as the market’s expect: cut interest rates on January 15 by 50 basis points to 2.00 percent to match the 2005 record low.

This easily leaves the 7:45 ET announcement as one of the most important pieces of event risk next week, but traders will also have to look out for comments by ECB President Jean-Claude Trichet during his post-meeting press conference at 8:30 ET. Mr. Trichet is one of the most opinionated central bank chiefs around, and suggestions that the ECB will continue to cut rates have the potential to lead the euro far lower. On the other hand, if the ECB goes the route of the BOE and signals that they may leave rates unchanged during their next meeting, the currency could actually rally.

[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.

We consider every client as a special case, a VIP and a partner. A client's profit is our success and a client's loss is a significant call of action for us. Customer care is the heart of our business, we know every client on personal bases as we provide 24/7 customer support.
We keep contact with our clients to ensure that we are on the right track. Leading our client relationship to success is our focus.
Let [ForexGen] prove to you that you have taken the right step by choosing our partnership.

Tuesday, January 6, 2009

Understanding the Risks Involved in Foreign Exchange Trading

After finding reputable brokers, you need to gather more information about how they do business, are they readily available to answer questions, or resolve complaints. You can do this by reading what they have on their website, and by calling them on the telephone to see how quickly and how well they respond, or getting advice from the many chat rooms about forex, including those provided by the broker. Although almost all forex broker review is done over the Internet nowadays, sometimes Internet connections don’t work, or the company’s trading platform isn’t working the way it should or the way you think it should, so it is very important that they also provide telephone service.

Most brokers offer both regular and mini-accounts, and require trades in specific lot sizes. A regular account usually requires at least a $10,000 deposit, and lot sizes are 100k—that’s 100,000 units of currency—and leverage ratios up to 100:1. With a ratio of 100, it takes only $1,000 to buy or sell $100,000 worth of currency. A pip is equal to 10 units of currency with 100k lot sizes. If the currency is USD, then 1 pip = $10.

Mini-accounts require a deposit of as little as $100, and lot sizes are usually 10k, with leverage ratios as high as 200—$100 can buy or sell $20,000 worth of currency. A pip = 1 unit of currency. If the currency is USD, then 1 pip = $1. You can generally buy or sell as many lots as you have leverage for, so a mini-account allows smaller increments. For instance, with a mini-account, you could buy or sell $30,000 worth of currency, but with a regular account, the minimum would be 100,000 units of currency, or increments of 100,000 units.

[Why ForexGen]

Sunday, January 4, 2009

Forex Prices - the Most Important Variable to Study for Huge Gains

Forex prices you want to know where there going so what's the most important variable. Supply and demand fundamentals - NO. A forex chart formation - NO The single most important variable is enclosed in this article.
It's the bullish or bearish sentiment of the participants.
I did a study of this 2 days ago on the dollar euro pair and since then the Euro declined by 400 pips and I said this in opposition to most of the market - does that make me smart or clever? Not at all, I just used some simple tools and stepped back to measure the psychology and you can use it to.
Let's take a look at this in more detail.
We all know the supply and demand fundamentals and the news won't help us make money as not only is it discounted in the price straightaway, but where prices go depends on how investors perceive them.

Proof of this is that markets always collapse when their most bullish and rally when there most bearish.T his is because humans dominated by greed and fear push prices to far either up or down and once prices have gone to far prices return to fair value. Of course away around this is to study forex charts and simply follow price action.

Forex charts are an excellent method of trading - but forex prices can give patterns that are false and it's a game of odds not certainties - so how about if we can add an extra filter in, to spot the reliable chart patterns and give more validity to them? Well you can and this will give you more confidence in executing your trading signals.

Your looking for formations where greed or fear have pushed prices to far from fair value. History show that short sharp price spikes are temporary and prices return to fair value.

[Why ForexGen]

Wednesday, December 31, 2008

Sterilized intervention

Sterilized intervention neutralizes its impact on the money supply. As there are rather few central banks that want the impact of their intervention in the foreign exchange markets to affect all corners of their economy, sterilized interventions have been the tool of choice. This holds true for the FRS as well.

The sterilized intervention involves an additional step to the original currency transaction. This step consists of a sale of government securities that offsets the reserve addition that occurs due to the intervention. It may be easier to visualize it if you think that the central bank will finance the sale of a currency through the sale of a number of government securities. Because a sterilized intervention only generates an impact on the supply and demand of a certain currency, its impact will tend to have a short-to medium-term effect.

[Why ForexGen]

Tuesday, December 30, 2008

Know Your Currencies

In the forex markets, it’s worth knowing the characteristics of the currency pairs, since each of them exhibit distinct identities. Most of the currencies exhibit similar movement patterns, which can help a trader confirm price movements. One such close relation can be found between the EUR/USD & USD/CHF.
The price movements of these two currency pairs are absolute mirror images. In short, they have an inverse relationship. If Eur/Usd is rallying, then Usd/Chf should have downward movement, and vice-versa.

The following chart has a comparative price movement of both these currencies, and this inverse relation can be seen very clearly

how does one take advantage of this?

The most obvious fact is that one must not trade both the currencies at the same time. If one is long the Eur/Usd, logically one should not be long the Usd/Chf at the same time, since the Usd/Chf would have a downward movement.
And…neither is it advisable to take opposing trades on these two pairs, because if the trade goes wrong, then the trader would incur losses in both the trades.
Ideally, one should trade either of the two pairs. The best way to take advantage of this fact is to cross-check a trade by looking for confirmation factors on the other pair. If a trader is planning to take a long position in the Eur/Usd, he can look for a similar short setup on the Usd/Chf. If such an opposite setup is present in the Usd/Chf, it only adds further credence to his long Eur/Usd trade.

There are other currency pairs also which exhibit a close relation. Another fact is that each currency has an approximate Average Daily Trading Range (also known as the ADR), which it follows in the normal course of the trading day.
While this is not written in stone, it serves a good thumb rule to estimate the movement of the particular currency. Thus it is worth studying these relationships…to gain a higher edge in the market. Sometimes it is this basic knowledge, which can be the dividing line between success and failure.

[Why ForexGen]

Tuesday, December 23, 2008

Swiss Franc Technical Outlook

We maintain that the US Dollar/Swiss Franc is likely to hold important Fibonacci support through the near future. The 1.0670 mark represents the 61.8 percent Fibonacci retracement of the 1.2300-0.9640 move, and said level may continue to contain declines through price action in the coming weeks.

The shorter-term picture is much more difficult to decipher, as the severity of recent USD/CHF moves leaves little in the way of significant resistance levels. Previous spike-highs just above 1.1300 represent the next level of clear resistance, and the USD/CHF could effectively remain within a range through the holiday-shortened week of trading.

[Why ForexGen]

Sunday, December 14, 2008

Japan Business Sentiment in Biggest Dive Since 70s

Japanese business sentiment has suffered its sharpest fall since the 1970s oil crises, taking the Bank of Japan's tankan survey to its lowest in nearly seven years and adding gloom to an economy facing a lengthy recession.
The dismal data in the closely watched quarterly survey fueled speculation that the Bank of Japan, set to review rates and downgrade its economic assessment this week, will cut its already low interest rates of 0.3 percent.
The financial crisis means shrinking sales for Japanese companies, prompting capital spending cuts and a fearful outlook, amid signs of the longest recession on record for the world's No.2 economy, with companies even more gloomy in their outlook.
Adding to the tough prognosis, BOJ Governor Masaaki Shirakawa told the FT the Japanese economy may contract in the year to March 2010.

Yasuo Yamamoto, senior economist at Mizuho Research Institute said the deteriorating global economy and a rapid rise in the yen was hurting exporters and he saw the central bank cutting rates as early as this week.
"There's a possibility that Japanese corporations' profit forecasts will be further downgraded due to the yen's appreciation," Yamamoto said.
"The Bank of Japan is expected to lower interest rates this week. In addition, the central bank is expected to take other measures to increase liquidity."
The yen traded at around 90.90 per dollar, slightly weaker than before the tankan but eyes were more on a nearly 4 percent jump in Tokyo's benchmark Nikkei share average (Osaka:^N225 - News) on hopes for a U.S. autos bailout. (^T - News)

The U.S. economy is also headed for its longest period of contraction on record as the credit crisis bites, making another Federal Reserve interest rate cut this week to 0.50 percent a near certainty, a Reuters poll found.
Fears of a global recession, shrinking exports and the yen's jump to a 13-year high against the dollar are hurting corporate revenues, prompting firms to slash output and capital spending as Japan grapples with its first recession in seven years.
An index gauging big Japanese manufacturers' sentiment worsened to minus 24 from minus 3 in the survey three months earlier, the December tankan showed, slightly worse than the market's median forecast of minus 23.
That was the most bleak reading since March 2002, when the economy was recovering from a prolonged slump sparked by a banking crisis.

The quarterly slide was the biggest since the 1970s oil shocks, matching a fall in early 1975 and second only to a record slide in mid-1974.
The big non-manufacturers' index worsened to minus 9 from plus 1 in the previous survey, turning negative for the first time in five years.
Companies were even more pessimistic about the outlook.
The index measuring big manufacturers' outlook for three months ahead fell to minus 36, while that of big non-manufacturers declined to minus 14.
Japan's economy sank deeper into recession in the third quarter, fuelling fears that the world's second-largest economy is facing its longest contraction ever combined with a return to deflation.

The collapse in global demand has forced leading Japanese companies such as Sony (Tokyo:6758.T - News) and Canon (Tokyo:7751.T - News) to slash jobs and investments and the yen's strength is threatening to further erode their export earnings.
Reflecting the gloom, big companies said they were cutting capital spending by 0.2 percent in the fiscal year to next March, the survey showed.
The Bank of Japan cut its key policy rate to 0.3 percent from 0.5 percent in October and unveiled a series of measures to ease credit strains as the fallout from the global financial turmoil spread.

The central bank's next policy-meeting will be held for two days until Friday.
The BOJ indexes are derived by deducting the percentage of respondents who say business conditions are poor from those who say they are good. Negative readings mean pessimists outnumber optimists.

[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.

[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.

Friday, December 12, 2008

US Dollar Declines May Continue as US Retail Sales

US Dollar Declines May Continue as US Retail Sales are Expected to Fall for 5th Straight Month

The US dollar was already falling across the majors this morning when the release of US economic data at 8:30 ET suggested that the Federal Reserve will indeed cut rates aggressively next week.

First, the US import price index fell by the most since record-keeping began in 1989 at a rate of 6.7 percent during November, bringing the annual rate of price growth to a 6-year low of -4.4 percent. The decline wasn't entirely unexpected, given the strength of the US dollar and plunge in commodity prices. In fact, according to the Labor Department, petroleum import prices plummeted 25.8 percent in November alone. Meanwhile, initial and continuing jobless claims surged to the highest levels since 1982, suggesting that the US unemployment rate could climb further from its 15-year highs of 6.7 percent. The National Bureau of Economic Research (NBER) has already declared that the US economy fell into recession in December 2007, but the labor market data only suggests that the recession will continue through the end of the year and into 2009.

Looking ahead to Friday, the Commerce Department’s release of US retail sales at 8:30 ET is forecasted to fall negative for the fifth straight month in November at a rate of -2.0 percent. Such a decline won’t be entirely surprising given the combination of the jump in the unemployment rate to a 15-year high, the continuing collapse in the housing sector, and persistently tight credit conditions. Later in the morning, the preliminary reading of the University of Michigan’s consumer confidence survey is forecasted to fall even further to a 28-year low of 54.8 in December from 55.3. Traders should beware that while this report has a 10:00 ET official release time, it tends to hit the wires a few minutes early, which can sometimes spark a bit of a “surprise” factor in the markets. Overall, disappointing retail sales and sentiment figures could weigh on the US dollar, especially as the Federal Reserve is anticipated to cut rates on December 16 by at least 50 basis points to 0.50 percent.

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Interested clients who wish to participate in this event shall send an e-mail request on demo.contest@forexgen.com including the following information:

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Also provide us with the following identification document:
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For more information about our current and future promotions, kindly contact one of our customers support agents at promotions@forexgen.com

Thursday, December 4, 2008

China's Currency Slips vs Dollar as Officials Meet

China's currency slips against US dollar, raising questions over Beijing's policy direction

The Chinese currency slipped Thursday against the U.S. dollar by the maximum amount allowed, the fourth day of such declines, raising questions about Beijing's commitment to a stronger yuan as U.S. and Chinese officials met to discuss a range of economic issues.
The Chinese yuan was quoted at 6.8840 in mid-afternoon trading. Earlier it dipped to a low of 6.8845, falling by the maximum daily limit of 0.5 percent from its opening level of 6.8502, traders said.
China keeps the yuan trading in a relatively narrow range against the U.S. dollar. It had stayed at about 6.83 to the U.S. dollar for several months before weakening abruptly on Monday.

The shift in the yuan, also known as the "renminbi," or "people's money," came as top U.S. and Chinese officials met Thursday in Beijing to discuss economic issues, including currency policy.
Washington wants to see Beijing loosen controls and let the yuan appreciate further against the dollar. Critics of China's policies contend that they keep the yuan artificially weak, giving the country's exporters an unfair advantage by helping keep products made in China relatively cheap.
Chinese leaders say they need to keep the yuan stable to protect the developing financial system. As export growth has fallen amid the global economic crisis, Beijing has hinted it might let the yuan weaken to help protect the country's export sector -- a crucial source of jobs and tax revenues.

Like most central banks, the People's Bank of China does not comment on its market activities. But a spike in demand for dollars due to technicalities of China's foreign exchange rules and expectations that the yuan will weaken further prompted the PBOC to sell dollars to help stem the dollar shortage, traders say.
Overseas nondeliverable forwards, a key measure of expectations of the yuan's future value that does not affect actual exchange rates, are betting on a decline to about 7.3 to the U.S. dollar within a year.
The central bank sets the yuan's parity rate -- a weighted average of prices given by market makers, excluding the highest and lowest offers -- early each trading morning. Thursday's parity rate of 6.8502 quickly succumbed to market pressure as the yuan again slid against the greenback.

Analysts say some of the pressure on the yuan stems from the U.S. dollar's recent rebound against the euro and other major currencies. Since the yuan is effectively linked to the dollar, the yuan has also gained against the euro, putting heavy pressure on the country's export sector.
But opinions are divided over whether this week's market movements signal an official shift of policy toward devaluation.
"Renminbi rate: a trend or an aberration?" queried a headline Thursday in the state-run newspaper China Securities Journal.

A weaker yuan would have a mixed impact, eroding China's purchasing power for key imports such as crude oil, industrial components and other commodities but helping export-oriented sectors, such as appliance and textile manufacturers and automakers.
"It will send the signal domestically that policymakers are taking all possible steps to support growth," Standard Chartered Bank said in a research note Thursday.

China won kudos from its neighbors for refraining from devaluing the yuan during the Asian financial crisis of the late 1990s.
Before this week's abrupt decline, the yuan had risen in value by more than 20 percent against the dollar since Beijing revalued the currency in mid-2005 in its most recent overhaul of its foreign exchange system.

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ForexGen Introducing Brokers, White Label and Money Manager holders are recognized as a strategic business partners. The main focus of our service is to satisfy our partner's needs in order to deal with a qualified service and gain a huge income sharing plan.

[ForexGen] provide appropriate services satisfying the needs of all business partner's specified situation and requirements.

Wednesday, December 3, 2008

Trading the European Central Bank's Rate Decision

EUR/USD:
The European Central Bank is widely expected to lower the benchmark interest rate by 50bp to 2.75% from 3.25% as price pressures alleviate. Falling commodity prices have certainly helped to taper the upside risks for inflation, which should allow the central bank to ease policy further as they carry out their one and only mandate to ensure price stability.

Trading the News: European Central Bank Rate Decision
What’s Expected
Time of release: 12/04/2008 12:45 GMT, 07:45 EST
Primary Pair Impact : EURUSD
Expected: 2.75%
Previous: 3.25%

Impact of the ECB rate decision on EURUSD over the last 3 months

November 2008 ECB Rate Decision

The European Central Bank lowered the benchmark interest rate by 50bp to 3.25% from 3.75% following the coordinated rate cut on October 8th. The ECB, along with the Fed, lowered the key rate by 50bp to 3.75% from 4.25% in order to avoid a global meltdown. Meanwhile, falling oil prices have certainly helped to taper the upside risks for inflation, which would allow the central bank to hold a dovish outlook going forward.

ECB President Trichet explicitly stated that policymakers may lower the benchmark interest rate further as they expected economic activity to remain subdued for ‘a rather protracted period’ of time, and may continue to ease policy throughout the next year as the economy heads into a recession. The remarkable shift in policy has clearly weighed on the euro, and may weaken further against the U.S. dollar as investors curb their appetite for risk.

October 2008 ECB Rate Decision

ECB policy members held the benchmark interest rate steady at 4.25% despite the downturn in the global financial market. The central bank was widely expected to hold a neutral policy stance as inflation remains well above their desired target, but could be forced to lower borrowing costs over the coming months as the spillover effects of the credit crunch spreads throughout the global economy. Increased turmoil in the financial sector has already led governments throughout Europe to step in as the lender of last resort, and policy makers may opt to take additional steps to avoid a severe downturn in the economy. Moreover, falling commodity prices should help to lower prices pressures in the near-term, which should allow the ECB to push inflationary concerns to the backburner as fears of a recession intensify.

September 2008 ECB Rate Decision

The ECB held a neutral policy stance to leave their benchmark interest unchanged at 4.25%, stating that upside inflation risks remains highly uncertain going forward. The central bank noted that they may look to increase the interest rate in order to anchor inflation expectations, and went onto say that the bank is ready to take the necessary steps if upward wage pressures accelerate in the following months. Amid the hawkish rhetoric, the growth outlook for the 15 European nations has deteriorated considerably since the beginning of the year, and has fueled recessionary concerns for the economy record high borrowing costs continues to limit economic activity. As the central bank remains focused on upside prices pressures, economic growth could weaken further as many countries throughout Europe are on the brink of a cession.

How To Trade This Event Risk
The European Central Bank is widely expected to lower the benchmark interest rate by 50bp to 2.75% from 3.25% as price pressures alleviate. Falling commodity prices have certainly helped to taper the upside risks for inflation, which should allow the central bank to ease policy further as they carry out their one and only mandate to ensure price stability. A Bloomberg News survey showed that 36 of the 56 economists polled expect the ECB to deliver a 50bp cut, while others estimate the interest rate to fall as low as 2.25%. With oil prices holding below $50 a barrel, policymakers lowered their outlook for inflation as they expect the CPI to fall to 2.1% from a previous estimate of 3.2% in October. Moreover, the producer price index recorded its biggest decline in 22 years as the annual rate slipped to 6.3% from 7.9% in September. Meanwhile, mounting growth concerns paired with instability in the credit markets have certainly dragged on the economy as retail spending fell 0.8% in October despite expectations for a 0.4% decline, and growth prospects for the euro-region may deteriorate further over the coming months as the economy heads into a recession. ECB President Trichet said that economic activity may remain subdued for a ‘protracted period’ of time as the spillover effects of the credit crunch continues to take a toll on the real economy, and lowered the growth forecast to 0.1% for 2009. Deteriorating fundamentals continues to fuel expectations for the central bank to lower borrowing costs throughout the next year as investors anticipate the central bank to lower the key interest rate by at least 125bp over the next 12 months, which could stoke increased selling pressures for the euro going forward.

As market participants raise bets for an ECB rate cut, we would need a drastic shift in the policy outlook paired with neutral commentary following the rate decision to set the stage for a long euro trade. With our expectations in hand, we will look for a green, five-minute candle following the release to validate a long entry on two lots of EURUSD. Our initial stop will be placed at the nearby swing low (or reasonable distance depending on volatility), and this risk will determine out first target. Our second target will be based purely on our discretion, and in order to preserve our profits, we will move the second lot to breakeven once the first trade reaches its target.

On the other hand, mounting growth fears paired with easing price pressures should allow the ECB to lower borrowing costs further, which could stoke increased selling pressures for the euro. As a result, if the central bank cuts 50bp or more, we will favor a short euro trade, and will follow the same set up as the long trade mentioned above, just in reverse.

[ForexGen Trading Support]

ForexGen dealing desk representatives are available during trading hours - 24/5 from Sunday 6:00pm EST to Friday at 2:00pm EST.

You are encouraged to contact the dealing room by phone in these situations:
*If you are not able to access the internet. *Failing to receive a confirmation on an online order. *Failing to connect to ForexGen server.

Whenever the trader asks for trading support, our team checks if the trader has performed the trading factually in order to facilitate the trading process and make it faster. Please pay attention to the following instructions before calling the trader support in the trading call center.

1. Your account number (visible in your Summary Report under ACID). While the User ID number is unverified.
2.Determine whether the order is a Market Order or a Limit Order and the number of units and the desired currency pair. [ForexGen] provides the trader with a factual changing quote stream. The prices can be changed more than three times at every second. Consequently the Market Orders will be maintained according to the current price the order was placed.
3. Specify your trade as "I would like to buy 5 lots of USD/JPY during the Market with a stop loss of 102.45 and a take profit of 102.62. . .".

European Fundamentals Disappoints Ahead of ECB and BoE Rate Decision

Deteriorating fundamentals continues to reflect a dour outlook for the euro-region, and may lead the European Central Bank to ease policy throughout the next year as price pressures alleviate.

[Fundamental] Headlines

• Big Three Seek $34 Billion Aid – Wall Street Journal
• Goldman Considers Online Bank – Wall Street Journal
• GE expects to miss profits forecast – Financial Times
• Merrill Said to Cut Bonuses by 50% as Revenue Slumps – Bloomberg
• Stocks to Rise in ’09, UBS Says; S&P 500 May Gain 53% – Bloomberg
• EURUSD – The German services PMI for November was revised lower to 45.1 from an initial reading of 46.2 as demands from home and abroad deteriorate.

The breakdown of the report showed that new businesses edged lower to 43.4 from 43.9 in October, while the employment component slipped to 49.8 from 50.7. Moreover, service-based activity throughout the Euro-Zone weakened further as the PMI fell to 42.5 from an initial reading of 43.3. A deeper look showed that business expectations weakened to 41.6 from 42.3 in the previous month, while the employment component slipped to 47.9 from 48.2. As a result, the composite PMI reading declined to 38.9 from 39.7, and may fall further over the coming months as the economy heads into a recession. Meanwhile retail spending in the Euro-Zone fell 0.8% in October despite expectations for a 0.4% decline. The report showed that discretionary spending on food and drinks fell 0.5% from September, while demands for non-food products slipped 0.9%. Deteriorating fundamentals continues to reflect a dour outlook for the euro-region, and may lead the European Central Bank to ease policy throughout the next year as price pressures alleviate. Discuss the topic and your trade ideas in the EUR/USD Forum.

• GBPUSD
– Service-based activity in the U.K. slipped to a record low in November as the PMI reading slipped to 40.1 from 42.4 in October. The breakdown of the report showed that business expectations fell to a record low reading of 49.5 from 50.8 in October, while new businesses plunged to 37.9 from 40.1. Meanwhile, the BRC shop price index rose 0.2% in November, while the annual rate reached its slowest pace in five months. The data continues to support a bearish outlook for the British pound as the Bank of England is expected to ease policy further in the months ahead, and may continue to lower borrowing costs in 2009 as the economy faces its worst recession in over a decade.

[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.

We consider every client as a special case, a VIP and a partner. A client's profit is our success and a client's loss is a significant call of action for us. Customer care is the heart of our business, we know every client on personal bases as we provide 24/7 customer support. We keep contact with our clients to ensure that we are on the right track. Leading our client relationship to success is our focus. Let's prove to you that you have taken the right step by choosing our partnership.

Tuesday, September 2, 2008

Understanding Spreads | ForexGen

What Is A Spread?
FIRST, 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. If the quote between EUR/USD at a given moment is 1.2222/4, then the spread is 2 pips. If the quote is 1.22225/40, then the spread is 1.5 pips.
SECOND, it is how brokers make money. Wider spreads result in a higher ask price and a lower bid price. As a consequence, you pay more when you buy and get less when you sell, making it more difficult to realize a profit
Brokers don't typically earn the full spread, especially when they hedge client positions. The spread compensates the market maker for taking on risk from the time it executes a client trade to when the broker's net exposure is hedged (possibly at a different price).
Why Are Spreads So Important?
Spreads affect the return on your trading strategy in a big way. Probably more than you think. As a trader, your sole interest is buying low and selling high. Wider spreads means buying higher and having to sell lower. A half-pip lower spread doesn't sound like much, but it can easily make the difference between a profitable trading strategy and an unprofitable one.

Using Moving Averages | ForexGen

You can make money with individual stocks no matter what the market is doing.But it is important to look at some key measurements. One of these measures is the moving average. Short-term moving averages help gauge the short-term direction of the market, while longer moving averages take a big picture view.For example: if a stock breaks the 200-day moving average on its way down, that's generally thought to be bearish, and the longer-term trend could be reversing. The 200-day moving average can also act as support. If a stock comes down, but stops at the major moving average and then starts moving higher from there, it can act as a firm underpinning of support for the stock.Looking at the 50-day moving average can be quite useful as well. It's more of an intermediate snapshot of the price trend and is more sensitive than the longer-term 200 day. A rising moving average with the price trading above it is bullish, while a descending moving average with the price trading below it is bearish. More short-term signals can be seen with the 10- and 20-day moving averages. Moving average crossovers can also be valuable. When the quicker moving average (50 day for example) is above the slower moving average (200 day), this is thought to be bullish. Likewise, when the shorter term is trading below the longer-term moving average, this is thought to be bearish.Using a screener can be helpful in finding stocks that meet this criteria. Of course, moving averages alone don't tell the whole story. But a company with solid fundamentals while also trading above these momentum indicators can help you find stocks bucking a downtrend or confirming an uptrend.The screen that I'm running today looks for stocks trading above their short term (10 and 20 day), intermediate term (50 day) and long-term (200 day) moving averages. I'm also demanding that their current quarter earnings estimates have been raised within the last 4 weeks (or at the very least, not lowered); their average broker rating has been upgraded (or at the very least, not downgraded): and they have a Zacks #2 Rank or Zacks #1 Rank (Buy or Strong Buy).

What types of accounts are available for forex trading?

There are many different types of forex accounts available to the retail forex trader.
Demo accounts are offered by forex brokers as a way to introduce traders to their software and execution methods.
live account is an account opened by traders with real money deposited in order to start trading for real profitMini accounts, and full accounts are the most common types of funded accounts. Mini accounts are similar to regular trading accounts; however currency is traded in lots of 10,000 rather than 100,000. This allows for lower mandatory initial deposits, and greater customization of risk management.It is important that the currency trader consider what they want to get out of their account, before deciding on the type to open. Demo accounts, and mini accounts, are great for the retail forex trader to learn a profitable system, and get used to the execution methods of the broker. For the currency speculator that doesn't want to trade by themselves, a managed account would be better.

Monday, September 1, 2008

What Is Forex?

The foreign exchange market is the "place" where currencies are traded. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. If you are living in the U.S. and want to buy cheese from France, either you or the company that you buy the cheese from has to pay the French for the cheese in euros (EUR). This means that the U.S. importer would have to exchange the equivalent value of U.S. dollars (USD) into euros. The same goes for traveling. A French tourist in Egypt can't pay in euros to see the pyramids because it's not the locally accepted currency. As such, the tourist has to exchange the euros for the local currency, in this case the Egyptian pound, at the current exchange rate.
The need to exchange currencies is the primary reason why the forex market is the largest, most liquid financial market in the world. It dwarfs other markets in size, even the stock market, with an average traded value of around U.S. $2,000 billion per day. One unique aspect of this international market is that there is no central marketplace for foreign exchange. Rather, currency trading is conducted electronically over-the-counter (OTC), which means that all transactions occur via computer networks between traders around the world, rather than on one centralized exchange. The market is open 24 hours a day, five and a half days a week, and currencies are traded worldwide in the major financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney - across almost every time zone. This means that when the trading day in the U.S. ends, the forex market begins anew in Tokyo and Hong Kong. As such, the forex market can be extremely active any time of the day, with price quotes changing constantly.

Thursday, June 26, 2008

Forex Basics with ForexGen

To start getting income from foreign exchange market (Forex), you don’t need to have any financial experience. You just need to find your way in the multitude of possibilities offered for those looking for profit from national currencies rate variations. And ForexGen provides all beginners with an Academy of professional experts in forex. The point of classic Forex trade, meant to get a quick income, is simple (which hardly differs from other markets): you have to sell on higher price what you’ve bought on lower price. Read more…But to get a grip on currency rates, you need more than simple mathematics. First thing, you have to learn all definitions: Besides the correct meaning of terms “currency” and “rate”, you need to know what “quotation” means, along with “currency pair” (which consists of base and counter currencies). You need to know what are “point”, “spread”, “trend”, “position” etc. Every action on Forex market is preceded by an analysis. Depending on its functions, the analysis can be fundamental (when the economic dynamics of a country are being studied thoroughly, along with prognoses on its changes), or technical (when we apply a mathematic approach to the graphs of currency rate fluctuations).The trade on Forex market goes on twenty-four hours a day. Saturday and Sunday are traditionally considered days of rest. The same as for all the other markets, work on Forex market uses a certain set of strategies, methods and techniques. There are rules you have to try and follow, and there are things you shouldn’t do. Every market session (Asian, European and American) has its own law and established traditions, which you also have to learn about.And finally, for the trade on Forex market you need to use certain tools (software, papers etc.) without handling which the theoretical knowledge will be useless.
For more detailed information can be found in http://www.forexgen.com/

Forex Trading with ForexGen

FOREIGN EXCHANGE TRADING Forex (FOReign EXchange market) becomes one of the most attractive instruments for investment.Forex boundless opportunities, such as absolute liquidity, round-the-clock operation, global scale, up-to-datetechnologies have created a unique profession -Foreign Exchange Trader.However, the art of making money using Forex trading, despite its simplicity, is not an easy matter.Our resource gives You a chance to become not only forex professional, but achieve real SUCCESS.Every day we offer You particular recommendations in real trade and analytical articles on FOREX basic currency pairs.Includes live forex signals through SMS. Besides, a full version of our forecasts is at your disposal.
ForexGen publish daily surveys of analytical articles on the leading world. Moreover, we give specific recommendations on FOREX market for real trading.
The graph demonstrates the effectiveness of our recommendations. The deposit growth from the beginning of our analytical work up to now is shown there. The deposit growth is taken considering opening of 1 lot for every currency pair and 1 point costs $10.

On Line ForexGen

Some brokers are exceedingly distinguished people to their clients, but there are those that are not. ForexGen may work for insurance companies, real state, and even companies which supply trading systems. They are influential people which many individuals can rely on whenever they would need help of some sort. But a broker system differs.
ForexGen system has a principal function of supplying clients with trading platforms. Trading platforms are well-known as the place to trade. There are also forex broker systems which supply training and programs which educate clients on how to invest money and how forex trading is being completed.
The training that is provided by these broker systems help several trade investors to reduce risks whilst maximizing profits. Investors therefore are able to profit a lot from these broker systems due to the fact they may also be able to acquire forex advice, help, knowledge, currency analysis, stock, and the coming market. Some also supply trading ideas and daily picks from newsletters.
The final goal of ForexGen system is to make an investor succeed. And this can only be achieved with a system having accomplished professional teachers and advisors who are able to give directional market tuition and forex training.
Beginners of the trade should be made aware that forex trading is a high risk investment. The currency market offers a lot of opportunity to earn huge amounts of profits but at the same time coupled with a lot of risks. Currency trading can give you a fortune in minutes, days and hours. But the sad truth is that it can also be lost just at the same time.
Currency forecasting is not an easy task, which is why many traders should not forget to gain knowledge of the trade first before they decide on making a trade. An intensive forex trading course can help in the learning of all the in and outs of trading. The pros can supply you with the needed educational knowledge before entering the real world of forex.
You can find a complete forex trading course that is of reasonable cost either online or in a traditional class. Here in ForexGen, you can find easy free on line courses available for those who want to attend them.
Additional services are now provided by many broker systems to draw the attention of prospects and clients. Forex is considered as a sophisticated game, which is why you need a forex broker system.
Get scrolling updates and information for the individual currency trader. Professional traders repeatedly write newsletters that can be of good use by other forex traders, they will be able to supply information about technical and fundamental analysis. Set up alerts are sometimes provided to give traders certain ideas for them to make more money.
ForexGen systems are entrusted by many individuals to buy and/or sell on their behalf.
First, you would need to have an account before you can set up ForexGen system. You can find it online. You must know that there is no fees with ForexGen.
Online ForexGen broker systems provide different services, and it particularly is quick in buying or selling and automatic execution. The 'spread' is clearly identified, for it is the lowest pip spread in market 1 pip.
The margin terms are also of utmost consideration. Ask how margins are calculated and margin requirements.
The broker system should be trustworthy and its efficiency as to performance should not be questionable. The trading software used by the trader is quite indispensable, that is why you should first see all the available options for you. Take advantage of free demos, this will help you greatly in making an informed decision.
Check all the policies of ForexGen broker system. Read especially those in fine print; oftentimes it is the most important part that the investor fails to read.

Reading FOREX quotes with ForexGen

Each world currency is given a three letter code which is used in FOREX quotes. The most common currencies are USD (US dollars), EUR (European euros), GBP (United Kingdom pounds), AUD (Australian dollars), JPY (Japanese yen), CHF (Swiss francs) and CAD (Canadian dollars).
Prices of foreign exchange are indicated by FX quotes in pairs of currencies. The first currency is the 'base' and the second is the 'quote' currency. In this example:
USD/EUR = 0.8320
...the currency pair is US dollars and European euros. The base currency (USD) is always at '1' and the quote currency shows how much it costs to buy one unit of the base currency. In this example, 1 US dollar costs 0.8320 euros.
Conversely...
EUR/USD = 1.1993
...tells us that it costs 1.1993 US dollars to buy 1 euro.
When the price of the quote currency goes up it indicates that the base currency is becoming stronger – one unit of the base currency will buy more of the quote currency. If the quote currency falls, however, the base currency is becoming weaker.
Foreign Exchange quotes are seen in 'bid' and 'ask' prices. Bid is the price that buyers will pay for the base currency (while selling the quote currency), and ask is the price that sellers will sell the base currency (while buying the quote currency).
Symbol
Bid
Ask
USD/CAD
1.2329
1.2379
This chart tells us that we can buy one American dollar for 1.2379 Canadian dollars, or sell one American dollar for 1.2329 Canadian dollars. The most commonly traded currencies pairs are the 'Majors' – GBP/USD, EUR/USD, AUD/USD, USD/JPY, USD/CHF, and USD/CAD.
We often see exchange rates listed in cross currency charts that list many different currencies and their values against each other. An example of such a chart is seen here:

US $
Ca $
Euro
UK £
US $
1.00000
1.24070
0.83953
0.56807
Ca $
0.80600
1.00000
0.67657
0.45841
Euro
1.19114
1.47805
1.00000
0.67755
UK £
1.7603
2.18147
1.47591
1.00000
In this chart, the currencies listed down the left side of the chart are the base currencies and the currencies at the top are the quote currencies. We can convert the chart above into currency pairs by following the row beside the base currency. Using US dollars as the base currency we get the following currency pairs:
USD/CAD = 1.24070 USD/EUR = 0.83953 USD/GBP = 0.56807
...which tells us that one US dollar is equal to the corresponding value of the quote currency. To find the opposite pair e.g. CAD/USD follow the Canadian dollar row to the US dollar column - CAD/USD = 0.80600 (one Canadian dollar is worth 0.80600 US dollars).
There is no standard for cross-currency charts – some have the base currency on the top and some have it on the side. How to tell which is which? You need to know at least one pair of currencies and which one of the pair is more valuable.
Currency prices are determined by a number of factors, the most important of which are economic and political conditions in the issuing country. Political stability, inflation, and interest rates are all factored into the price of any currency. In addition, governments can try to control the price of their currency by either flooding the market (to lower the price) or buying extensively (to raise the price).
Because of the immense volume of FOREX, however, it is impossible for one force to control the market for any length of time. Market forces will prevail in the long run, making FOREX one of the most open and fair investment opportunities available.

ForexGen Presents Trading Tools

FOREX traders almost always rely on analysis to make plan their trading strategies. There are two basic types of FOREX analysis – technical and fundamental. This article will look at fundamental analysis and how it used in FOREX trading.
FOREX fundamental analysis refers to political and economic conditions
that may affect currency prices. FOREX traders using fundamental analysis rely on news reports to gather information about unemployment rates, economic policies, inflation, and growth rates.
Fundamental analysis is often used to get an overview of currency movements and to provide a broad picture of economic conditions affecting a specific currency. Most traders rely on technical analysis for plotting entry and exit points into the market and supplement their findings with fundamental analysis.
Currency prices on the FOREX are affected by the forces of supply and demand, which in turn are affected by economic conditions. The two most important economic factors affecting supply and demand are interest rates and the strength of the economy. The strength of the economy is affected by the Gross Domestic Product (GDP), foreign investment and trade balance.
Indicators
Various indicators are released by government and academic sources. They are reliable measures of economic health and are followed by all sectors of the investment market. Indicators are usually released on a monthly basis but some are released weekly.
Two of the most important fundamental indicators are interest rates and international trade. Other indicators include the Consumer Price Index (CPI), Durable Goods Orders, Producer Price Index (PPI), Purchasing Manager's Index (PMI), and retail sales.
Interest Rates - can have either a strengthening or weakening effect on a particular currency. On the one hand, high interest rates attract foreign investment which will strengthen the local currency. On the other hand, stock market investors often react to interest rate increases by selling off their holdings in the belief that higher borrowing costs will adversely affect many companies. Stock investors may sell off their holdings causing a downturn in the stock market and the national economy.
Determining which of these two effects will predominate depends on many complex factors, but there is usually a consensus amongst economic observers of how particular interest rate changes will affect the economy and the price of a currency.
International Trade – Trade balance which shows a deficit (more imports than exports) is usually an unfavourable indicator. Deficit trade balances means that money is flowing out of the country to purchase foreign-made goods and this may have a devaluing effect on the currency. Usually, however, market expectations dictate whether a deficit trade balance is unfavourable or not. If a county habitually operates with a deficit trade balance this has already been factored into the price of its currency. Trade deficits will only affect currency prices when they are more than market expectations.
Other indicators include the CPI – a measurement of the cost of living, and the PPI – a measurement of the cost of producing goods. The GDP measures the value of all goods and services within a country, while the M2 Money Supply measures the total amount of all currency.
More than 40 indicators are used in ForexGen. Indicators have strong effects on financial markets so FOREX traders should be aware of them when preparing strategies. Up-to-date information is available on many websites and many FOREX brokers supply this information as part of their trading service.

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