Forex contract sizes With ForexGen

ForexGen now has a trading new client called MultiTerminal. The MultiTerminal is intended for simultaneous management of multiple accounts, for which is mostly helpful for those whom manage investors' accounts and for traders working with many accounts simultaneously.

The usual contract size for ordinary FX traders is USD $100,000. This is one lot, which is the minimum size normally traded. You put up a margin, usually $1000-$2000 depending on your broker.

Some FX brokers now offer mini-contracts. These are 1/10 the size of regular FX contracts, and represent $10,000. The margin is proportionately smaller. The cost of trading mini-contracts is higher, as there is more work for the broker to do in fitting the mini-contracts into the market. However mini-contracts are a great opportunity to start trading without having to risk a lot of money, and can help new traders become familiar with the market before moving on to the full size contracts.

ForexGen traders use fundamental analysis, technical analysis, quantitative analysis and sometimes a combination of all three to make their trading decisions. Fundamental analysis involves the use of economic, financial and political news to determine trading decisions. Technical analysis involves the study of Charts to predict future price movements based on past price patterns and trends. Quantitative analysis consists of the use of preset statistical models and properties in quantifying price formations such as averages, ret cements as well as identifying oversold and undersold situations.

Forex Currency Trading | ForexGen Academy

Currency trading, foreign exchange or forex as it’’s more commonly known, has fast become one of the

most popular markets for private traders in recent years.

As its name suggests, it involves buying and selling foreign currency. The most commonly traded

currencies are referenced against the US Dollar and are sometimes referred to as a “currency pair”

even though you are only trading one instrument. For example, the GBPUSD is the UK Pound/US Dollar

pair. A value of 1.7625 would

mean that the one Pound is worth 1.7625 Dollars. Other popular pairs include the Euro (EURUSD), the

Swiss Franc (USDCHF) and the Japanese Yen (USDJPY) although there are others.

So unlike shares and futures, you don”t have a mass of markets to choose from, but there is variety

within forex currency trading to give you a range of markets to trade.

The value of each pair differs slightly but the minimum movement - called a “pip” - is worth

approximately $10. The GBPUSD has been averaging 100-150 pips per day

which would be $1000-1500. Many brokers let you trade half or even quarter-size lots which are useful

when you”re starting out. Also, many brokers offer a demo account so you can practice before risking

real money.

The total value of the forex market is worth trillions of dollars per day, far larger than shares or

futures. It is also a truly international market with dealing

taking place all around the globe 24 hours per day from Monday to Friday. You can, therefore, trade

at any time of the day or night at times to suit you. It’’s worth noting, however, that the bigger

moves generally occur during the US and European trading sessions.

You can sell short forex just as easily as you can buy and brokers offer highly-leveraged accounts

too - but the same warning regarding margins apply here as well.

Brokers tend not to charge a commission for trading forex and you will often see adverts for

“commission free” trading. However, they make their money on the spread which is the difference

between the buying price and the selling price. The spread is usually between 3 and 5 pips although

some brokers may offer a 2 pip spread on some pairs, and some less-popular pairs may have a larger

spread.

Paying on the spread is particularly useful when trading mini lots. A 3-pip spread on a quarter lot

will be about $7.50 whereas on a full-size lot it would be $30.

Again, the spread is more important when trading short time frames where you”re only aiming to make a

few pips per trade. You need to build the spread into your trading system so you don”t overestimate

the amount you might make per trade.

One interesting aspect of forex currency trading is that there is no central clearing house where

absolute prices are quoted, unlike shares and futures. So it’’s quite possible to see different

brokers quoting slightly different prices for the same pair. As the market has become more efficient,

this difference has reduced,

in most cases, to a few pips but it highlights the importance of checking that the data you are using

for analysis is the same - or close to - that used by your broker for placing your orders.

The market you decide to trade will depend on many things, not least of all, your budget, but also

how many markets you want to look at and what hours you want to trade. There are trading vehicles to

suit all preferences and pockets.
ForexGen serves both private and institutional clients. We have a strong commitment to maintain a

long term relationship with our clients.

Financial Trading - So Many Markets | ForexGen Academy

Trading covers a multitude of sins, or at least a multitude of markets. Mention “trading” to a non-

trader and they”ll probably think of stock and shares but there

are many other markets you can trade in. These include commodities, futures, indices, CFDs and

options. They all have their pros and cons and some require specialized knowledge.

The most popular markets used by traders are stocks, commodities, futures, indices and forex. Some

traders switch between markets, others stick to just one. Let’’s highlight some of the similarities

and differences between them.

Shares

In the USA there are over 40,000 shares so you have a lot of markets to choose from. You can”t deal

in all of them so you need to home in on those that offer good trading opportunities using whatever

trading methods you decide to use.

When buying shares you usually have to put up all the money at the time of sale. That might seem

obvious but it’’s not so with all markets. Some brokers offer a 50%

margin with shares which means you can trade to the value of twice the amount in your account. This

seems like a good deal but if your shares start to go down you”ll get a “margin call” and will either

have to put more money in your account or sell the shares at a loss.

Shares are normally traded in lots of 100. If you want to trade an expensive share - and some shares

are very expensive, particularly in the US markets - you need a considerable amount of money in your

account.

It’’s not easy to sell shares short. Selling short is a strange concept to many people who think of

buying shares at a low price and selling then at a higher price.

But it’’s often easier to predict that a share will fall rather than rise so what you”d like to do is

to sell it at a high price and then buy it back later at a low price. The net result is the same

whatever the order of the deals - buy low, sell high.

However, you can”t sell something you don”t own so in order to sell shares short you must “borrow”

them from your broker. This is not quite as straightforward as buying and not all shares are

available for selling short.

Finally, share dealing takes place during market hours so if you don”t live in the country where they

are being traded you must adjust your trading hours to suit.

Futures, commodities and indices

Commodities are goods such as corn, copper, crude oil, orange juice, oats, gold and wheat.

Technically, a futures contract is an agreement to make or accept delivery of a commodity on a

certain day at a certain price. In practice this rarely happens unless you”re a manufacturer who

actually wants the goods. The vast majority of futures traders are simply speculating on whether the

price will go up or down and never take delivery of an item.

Futures contacts include commodities and also stock market indices such as the S&P 500, Dow Jones and

the Russell. Indices are simply a composite of securities that provide an overall reading of the

market or some section of it.

The S&P 500 (Standard & Poor’’s 500) tracks 500 of the largest companies in the US market. The Dow

Jones Industrial Average tracks only 30 of the largest and longest-established companies while the

Russell 2000 is an index of smaller stocks.

Essentially, commodities and indices are futures and traded in much the same way although traders may

use the terms interchangeably.

Unlike shares, futures can be sold short just as easily as they can be bought. Each futures contract

has its own fluctuating price and many traders deal in just one lot contracts.

Brokers usually charge a flat fee commission per contract, often expressed as a “round turn” which is

one buy and one sell transaction. This may be a few dollars,

often less than the value of a point or two on the contract. If you”re trading a long time frame the

commission is negligible but if you”re day trading and scalping for a few points here and there it

becomes a considerable part of the cost.

Futures brokers usually offer a margin of around 20% of the value of the underlying instrument so you

can control $10,000′’s worth of a contract for maybe $2,000.

However, the same rules apply - if you over-leverage your account you”ll receive a margin call or

your positions will be closed at a loss. Margin and leverage are a double-edged sword.

Many brokers offer a demo account so you can get used to the trading platform and test your trading

strategies before you put real money on the line.
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.

Types of Orders in Forex Trading

When your broker buys or sells currency for you, he or she is “executing” an order.

You can place different types of orders with your broker, depending on what you want to do, your

situation, analysis and goals.

These are the most common types of orders your broker can place for you:

Market Orders

This is the simplest kind of order and is the most common type used in day-trading. Simply, a broker

places a market order to buy or sell a currency at the current market price. A trader places a market

order by determining what type of currency pair he wants to trade, plus the number of lots he wants

to trade.

For the most part, you should be able to execute very quickly, just by clicking your mouse. Your

order should go through almost instantaneously, at the price you requested.

Limit Orders

You use a limit order to buy or sell currency when the currency reaches a particular price. For

example, you might see that USD/JPY is currently trading at 117.50, with the price on a downward

trend. Your analysis shows that it should go to about 117.25 and then start coming back up.

Instead of waiting for it to drop to 117.25 and then placing the order, you can place what’’s called

a “limit order” at 117.25. What will happen is that the order will be placed when the currency hits

that price, automatically and without your having to sit around and wait for it to drop there.

Now, if your analysis is off and the price only goes to 117.30 before it starts coming back up, the

trade will not be executed at all. It must hit 117.25 before the trade executes, with this type of

order. In this case, the order is usually canceled at the end of the day if it does not execute.

Stop-Loss Orders

Experienced traders usually use stop-loss orders to help minimize losses.

If, for example, you expect the price of a particular pair of currencies such as GBP/USD to go up,

you can place a buy order at 1.8255 and a stop-loss order at 1.8235. However, if your analysis is

incorrect and the price goes to 1.8185,a stop-loss order can protect you by automatically selling at

1.8235. Therefore, instead of losing 70 pips, you only lose 30 pips.

OCO

“OCO” stands for, “One order cancels the other order”. What this means is that two orders are placed

with prices both above and below the current price. When one trade goes into play, the other cancels.

For example, if the price of USD/CHF has been staying around 1.2435 for some time and you have a

feeling it’’s going to change soon but you”re not sure which way it’’s going to go, you place an OCO

order to buy at 1.2445 or alternatively, to sell at 1.2455. This way, your trade takes off as soon as

the currency goes one way or the other. One trade is canceled as soon as the other is executed.

How To Succeed In Online Trading | ForexGen Tips

Online trading is huge today with more and more investors opting to go online rather than stay with

the tradition way of trading involving loads of paperwork, fighting it out on the stock market or

haggling with the broker for lower rates of commission. Online trading allows you to trade anytime

you want, from anywhere you want.

But if you have never traded before and it is only after online trading was introduced that you

became interested on trading in stocks, then you must realize though the method of trading might have

changed the fundamentals of trading haven”t. So the first thing you need to know before you even

start trading are the basics of a stocks and shares. There are plenty of books on the subject which

will allow you to form preliminary ideas and give you tips on investing. Get a clear idea as to how

the stock market functions.

Then get a hang of how the markets have been performing over the last year or so. Which industries

have been on the rise, which are on the decline, and which are all set to show tremendous growth.

This background on stock market will stand you in good stead when you will be going through the

numbers and help you analyze and understand them better.

Online trading is not real time. This you have to understand. Yes your orders can be transacted in

matters of minutes or even a few seconds. But remember there are millions who today trade online. So

if you are trading on a particular stock there will be hundreds or even thousands who will be placing

orders of the same stock at the same moment. So even in seconds there can be huge troughs and crests

on the price of a particular stock. If you are unaware of such chances your plans can go haywire. The

best option in such cases is to place price limit orders. Then you wouldn”t be losing beyond what you

expect.

Online trading is the future of stock trading if it is already not the present. The positive about it

is that everyone can now participate on trading. But that also has a negative effect. Because of the

ease many will opt for trading without being properly prepared. And with so many investors without

knowledge as to how the markets work, the bigger players will have a field day. The market will also

lose its stability. So if you want to succeed do your homework.
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.

Learning The Forex Market With ForexGen

Trades can be between markets or countries and they happen daily. Right now, some of the heaviest trading is going on between the Euro and US dollar followed by the US dollar and the Japanese yen. Another big trade is between the Great British pound and the US dollar.

These markets are opening and closing according to the time zone they live in, so a trade can be taking place while you sleep. Online forex trading has made it possible for people to trade 24 hours a day if they have the intestinal fortitude and enough coffee to stay up day and night. In addition most of the big brokerage firms are now geared to online forex trading.

Learning the forex market takes practice and learning.
It is never too late to start practicing and playing especially with online forex trading which puts the brokerage firm right in your lap. Go to your favorite search engine and type in forex trading and start clicking on the results. Remember to do your homework before signing up with anybody.
You’ll need to research virtual brokers as well as the physical ones prior to getting involved with them. forex trading is fun and profitable if you take the necessary steps to do it safely. Try out online forex trading to see if trading currencies is right for you

ForexGen Explains Market Volatility

ForexGen provides its users with a full explained market analysis, fundamental or technical. ForexGen news centre could be your guide in making your calculations and forecasts for the coming period, and helps in analyzing fundamentals.

Volatility at 7 Yr High - One month at the money EUR/USD volatilities also hit the highest level in 7 years. Volatility peaked at 14.55 in the EUR/USD days after the 9/11 attack. We are faced with sharp volatilities once again with ATM 1 month voles at 12.63. High volatility tells us that the currency markets are still nervous but periods of high volatility usually proceed periods of lower volatility. Back in 2001, after volatility peaked, the trading ranges in the EUR/USD contracted by 50% - which range lasted for 8 months.

The weakness of the Euro

Eurozone Needs a Weak Euro - The weakness of the Euro should be comforting for the European Central Bank because it is the answer to many of their problems. As an export dependent region, the slide in the Euro will help to support the economy, just like the weakness of the US dollar has contributed to corporate profitability. The Eurozone can also handle a weaker currency at this time because oil prices have fallen materially. Therefore don't expect the ECB to stem the currency's fall. We still believe that there will be further losses in the EUR/USD but not beyond 1.35.

ForexGen has released the Multi-Terminal Platform that allows more privileges for money management and account viewing Register Now For Free Account.

Technical analysis is a method used to evaluate the worth of a security by studying market statistics.

Unlike fundamental analysis, technical analysis disregards an issuer's financial statements. Instead, it relies upon market trends to ascertain investor sentiment to predict how a security will perform.

If you want to use technical analysis to help you make an investment decision, you will refer to financial charts, tables and ratios found in the financial press.

Technical analysis can be conditionally divided into some main parts such as:

Types of charts.

Graphical methods.

Analytical methods.

Technical indicators.

Speech Material

What is ForexGen influences prices in the currencies market?

Prices in the currencies market are affected only by macroeconomic factors, such as inflation, unemployment, and industrial production.

Information on events such as these is easy to find and based on their analysis of the economic data, traders take positions on the market to make profit.