Trading Smart In The Foreign Exchange Market

Hundreds of thousands of individuals have already joined the Foreign exchange Market. If you are interested in a way to invest your money with quicker returns, foreign exchange Market may be perfect for you. But before you can begin earning money, you should thoroughly understand the Foreign exchange Market.

Investing Methods

To better understand the Foreign exchange Market, you can compare this investing method to trading stocks. In the stock market, you can buy shares of many different corporations in the hope that stocks will rise, earning you a profit.

Well, the Foreign exchange Market works in the same way, except you are not buying shares of a corporation. Rather, you are buying and selling currencies. The aim is the buy a currency and sell it when the currency rises, thus earning a profit when the currency is more valuable.
As with the stock market, the Foreign exchange Market consists of those who invest a small amount as well as those with millions to invest.

Predicting Results

But like the stock market, the Foreign exchange Market is full of risks. When you are investing any money there is always a risk of some loss. To minimize loss, many FX traders thoroughly educate themselves through classes, online courses, books, and other materials. There are many kinds of trading methods that will help you analyze current conditions and enable you to predict results.

The Foreign exchange Market is constantly changing, with drops and rises in currencies, 24 hours a day. The trick is to predict these trends before they occur, so you can buy currencies low and sell them when it is higher than the original cost. Sometimes, this means buying a dropping currency, and waiting for that currency to take on an upward trend. This forces you to keep up to date on the Foreign exchange Market conditions.

Training Account For Free

For those that are beginners in Foreign exchange market , you should attempt to locate a FX trading company that forex offer you to trading of foreign currency without cost. This is accomplished in many places as a 'game account'. They let you play with 'virtual money' for a trial period of training.

Forex Education For Free

It is a good idea to take advantage of the Forex education available for free that forex offer. Numerous trading companies make available seminars that are online to present to new investors ways in navigating the FX trading system.

Course For a Free forex offer for learning the FX trading environment is to spend a fee for these courses. The benefit of these types of courses is that you take away an individualized strategy for your FX trading account.

Secrets To Choose A Forex Broker

There is some other key points to consider when looking for a foreign exchange broker competition:

- Available currency pairs - Each foreign exchange broker competitive will have, at the minimum, the seven major currencies.

- Transaction costs - The foreign exchange broker competitive based on the bid ask spread. There should be no other hidden charges or fees. If the spread is smaller, that means it is better for you. Pip spreads vary from broker to broker so do some competitive shopping.

- Free analysis tools - You will need to have some charts and technical analysis tools to be able to spot trends and plan your entry and exit points. Most foreign exchange brokers comptitive offer their basic services at no charge. If you require something over and beyond the basic service, there may be an additional charge.

- Immediate execution of orders - You will need a broker who will be able to consistently execute your trade swiftly.

- Margin requirement - If you want to have more leverage, choose a low margin requirement. You can use margin to your advantage to produce huge profits.

- Minimum account balance - Since you are a small individual investor, you must try to find a foreign exchange broker competitive who does not require a hefty balance to open an account.

- User-friendly trading platform - Before deciding to go with one particular broker, choose a few foreign exchange brokers competition and ask to sign up for a free demo account.

The Ultimate Trader Champion

Win Cash Prizes

ForexGen has the pleasure to announce the launching of the ultimate trader champion on the first of every month.

Interested clients who wish to participate in this event shall send an e-mail request on contest@forexgen.comThis e-mail address is being protected from spam bots, you need JavaScript enabled to view it 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"

After we receive your request we will provide you with further details and with your ForexGen demo account login information which will be used in the trading contest.

This Forex contest for the current month will starts on Sunday 20-12-2009 at 10 pm GMT and ends on Thursday 31-12-2009 at 10 pm GMT.

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

ForexGen is Giving You Cash This Christmas

There aren’t many Forex promotions like this one, but then again there aren’t many Forex Brokers like this one.

Get a 25% cash back straight into your trading account, on any deposit you make up to $100,000, during the month of December OR get free rebates also during the month of December and next 3 months that you will get $ 1 for each closed mini lot and $ 10 for each closed standard lot.

ForexGen knows what traders are looking for, Simplicity, Security and Safety. That’s why the majority of our traders use our services again and again.

• We offer 24/7 hour support and a personal account manager to all of our traders.
• We offer training and education resources.
• We send our traders daily Market Reviews by email each day.
• We send the latest trading signals by email.
• And we don’t charge fees or commission.
• Free hedging activities.
• Free Signals, Charts and news.
  

Register with ForexGen to start trading Forex and we’ll look after the rest.

For more information about Christmas at ForexGen email us at Operations@forexgen.com

Forex - Pips, Spread, Margin, Leverage

Currencies are traded in pairs and exchanged against each other. The majority of currencies are traded against US Dollar. The first currency in the exchange pair is called Base Currency and the second currency is called the Counter Currency or Quote Currency.

The exchange rate tells you how much of the counter currency must be paid to buy one unit of the base currency. The exchange rate also tells the seller how much is received in the counter currency when selling one base unit. For example, an exchange rate for EUR/USD of 1.2083 specifies to the buyer of Euros that 1.2083 USD must be paid for one Euro.

Spread is the difference between the buy and sell price. Like in stock market ask and bid. This is the difference between the market makers selling price and the price the market maker is ready to pay to buy the same currency. This means that if you buy a currency and then sell the currency before the price has changed you will lose money because of the spread. Bid price is always lower than the ask price, thus the situation. For example if EUR/USD bid/ask is 1.2010/1.2015 then by selling the security before the price has changed, you will lose 5 pips.

Now you might be wondering what the heck the pip is. I know that when I first started reading about forex and such I wondered for quite a bit what is that pip they are talking about. Basically, as currency rates do not change a lot then the changes are brought out in pips. One pip is 0.0001 in case of all the currencies excluding Yen. For Japanese Yen one pip is 0.01. So if the exchange rate changes by 20 pips then now you’ll know it means 0.0020.

When in banks the exchange rates – buy/sell rates (spread) for different currencies may vary even more than 1000 pips, in forex market it’s a lot smaller and because of that investors may profit even from only small price movements.
Price of a currency is called Quote and there are two kinds of quotes – direct quotes and indirect quotes. Direct quote is the price for 1 US dollar in terms of the other currency. Indirect quote is the price of 1 unit of a currency in terms of US Dollars. The market maker provides the investor with quotes. The quote is the price the market maker will honor when the deal is executed.

When quote is not put against US dollar but against another currency, this is called Cross rates. For example GBP/YEN. This is called cross rate because it is calculated via US Dollar. To give you an idea how cross rate is calculated:

GBP/USD = 1.7464 USD/JPY = 112.29 Thus GBP/JPY = 112.29*1.7464 = 196.10

Don’t worry about the calculation though, in different forex trading platforms the calculations are all done for you. But it’s still good to know where the rate has come from.

Now, lets talk about MARGIN. Trading providers need collateral to make sure that the investor can pay up in case of losses. This collateral is called margin and is also known as minimum security in forex. This is basically the deposit to the trader account that is intended to cover and possible trading losses in the future. Margin enables traders to hold a lot larger position than their account value.

Some trading providers also require a maintenance margin that is used to cover administrative costs and such. And most importantly to cover loss in case of a “gap” or “slippage” in rates. For example if you have set a stop-loss rate to 1.8075 but the the rate jumps from 1.8050 directly to 1.8090. To cover loss that might come from here, the maintenance margin is used.

Leverage allows traders of forex market use credit. You might sort of compare it with short selling in stock market. Not the same, but starting traders might find the idea bit similar.

The leverage may allow a trader control 50-400 times bigger amount than he has actually deposited. For example if you deposit just $100 you may be able to actually play with $10 000. Of course, in this case this $100 is the margin you are willing to lose, everything’s at stake.

[ForexGen Live Account]

The live/real account is provided to those clients who may have some experience in the online trading.

[Opening an Account Online]

The quickest, easiest and secure way to open a ForexGen trading account is online.
Complete and submit your application online in just a few minutes.

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.

1 Pip Spread Forex Trading Platform

Learn how to trade FOREX by working with a Professional FX Trader! Its one thing to read how to calculate pivot points or exponential moving averages, but it’s critical that you see how they, and the other indicators (like MACD or RSI), work together in real-time.

….. is different because I'm not selling a "system". I trade my own money while people watch. Most members trade a [demo account] along with me, so if I win or lose, we both have an opportunity to learn. How many "experts" are willing to trade real money while you watch? To learn more click here: 1 Pip Spread Forex Trading Platform

[Partnership With ForexGen]

ForexGen offers three types of business partnerships:

*Introducing Broker
*White label
*Money Manager

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.