The Foreign Exchange Market (FOREXGEN)

What is FOREX ?

The Foreign Exchange Market, better Known as FOREX, was established in 1971 when fixed currency exchanges were abolished.

Currencies became valued at ‘floating’ rates determined by supply and demand.

The FOREX grew steadily throughout the 1970’s, but with the technological advances of the 80’s FOREX.

The Foreign Exchange Market, is a worldwide market for buying and selling currencies.

It handles a huge volume of transactions 24 hours a day, 5 days a week. Daily exchanges are worth approximately $2.6 trillion (US dollars).

In comparison, the United States Treasury Bond market averages $300 billion a day, and American stock markets exchange about $25 billion a day, you can see how enormous the Foreign Exchange really is.

Protect Your Self

Before we go any further we are going to be 100% honest with you and tell you the following before you consider trading currencies:All forex traders traders LOSE money on tradesNinety percent of traders lose money, largely due to lack of planning and training and having poor money management rules.
Trading forex is not for the unemployed, those on low incomes, or who can’t afford to pay their electricity bill or afford to eat.
The Forex market is one of the most popular markets for speculation, due to its enormous size, liquidity and tendency for currencies to move in strong trends.Many traders come with the misguided hope of making a gazillion bucks, but in reality, lack the discipline required for trading.
Most people usually lack the discipline to stick to a diet or to go to the gym three times a week.

About ForexGen

ForexGen LTD is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.
ForexGen LTD serves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.
ForexGen principalsForexGen LTD 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.

What is Leverage ?

This is the one characteristic that makes ‘FOREX’ trading so appealing trading more money than you have in your account. It’s of course a double sword and creates risk. The bulk traders fail at ‘FOREX’ trading because the over leverage their positions. For example, for every $1,000 you have, you can trade 1 lot of $100,000. So if you have $7,000 they may allow you to trade up to $700,000 of forex. Leverage to deal with it you need to enter & exit at optimum risk reward.

What is a margin call ?

A broker’s demand on an investor using margin to deposit additional money or securities so that the margin account in brought up to the minimum maintenance margin. This is sometimes called ‘fed call’ or ‘ maintenance call. You would receive a ‘MARGIN CALL’ from a broker if one or more of the securities you had bought (with borrowed money) decreased in value past a certain point.
Example
Let’s say you open a regular Forex account with $3,000 (not a smart idea). You open 1 lot of the EUR/USD, with a margin requirement of $1000. Usable Margin is the money available to open new positions or sustain trading losses. Since you started with $3,000, your usable margin is $3,000. But when you opened 1 lot, which requires a margin requirement of $1,000, your usable margin is now $2,000

Forex Broker

The main participants in forex market can be divided into the following types: banks, some commercial companies and some foreign currency brokers.
Broker is the intermediary who helps you access to foreign exchange (forex). Similar to a stock broker, these agents can also provide advice on forex trading strategies. This advice to clients often extends to technical analysis and research approaches designed to improve client forex trading performance

Choosing a Broker

There are many forex brokers to choose from, just as in any other market. Here are some things to look for:
Low Spreads - The spread, calculated in “pips”, is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time. Forex brokers don’t charge a commission, so this difference is how they make money.
Quality Institution - Unlike equity brokers, forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required (leverage they need o provide). Also, forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC).
Extensive Tools and Research - Forex brokers offer many different trading platforms for their clients - just like brokers in other markets. These trading platforms often feature real-time charts, technical analysis tools, real-time news and data, and even support for trading systems. Before committing to any broker, be sure to request free trials to test different trading platforms.
Wide Range of Leverage Options - Leverage is necessary in forex because the price deviations (the sources of profit) are merely fractions of a cent. Leverage, expressed as a ratio between total capital available to actual capital, is the amount of money a broker will lend you for trading. For example, a ratio of 100:1 means your broker would lend you $100 for every $1 of actual capital.