ForexGen News Updates

Tips For Currency Trading By ForexGen

Posted by: kate @ 09/26 2008, 14:12

Forex Trading: How To Succeed In It?
Forex is the centre stage on which a majority of forex trading and currency trading takes place with daily currency turn-over worth over $1.2 trillion.
Forex or Foreign exchange originated in 1973 and since then it is the most prolific and largest finance exchange market in the world. It is the centre stage on which a majority of forex trading and currency trading takes place with daily currency turn-over worth over $1.2 trillion.
These currencies are primarily traded between commercial banks, central banks, international non-banking corporations, private investors, hedge funds and speculators. In previous years, medium and small investors could not participate in forex trading due to the huge amounts of deposits required but due to rise of competition and growth of Internet, they also take part in it on a large part.
The major factors why more and more smaller and medium sizes investors are getting attracted towards forex trading are that because it operates for 24 hours a day and 5 day a week and as it was previously done through phone only, now it can be done conveniently and continuously through Internet across the globe.



No doubt, direct forex market is one of the most thrilling markets for the investors and at the same time it is potentially lucrative. The main punch is to know when to trade your cash, which free forex trade alerts can tell you. These alerts notify the traders when it is time to carry out a trade.
It has to be remembered that direct forex market remains open 24 hours per-day and the traders cannot stick to the computer all day, and at the same time they will not also want to lose any opportunity of trading either. In that case, free forex trade alerts notify the traders whenever it is the right time to hit a cord via SMS or e-mail.
Due to the unstable nature of the forex trading, the traders need to stay informed about the ups and downs of the market, which can be done with the help of forex trade alerts without the need to stick to the computers all day long.



Many investors believe in no deal desk forex which means that they prefer to go to ECN brokers rather than trading through deal desks. Some also use deal desk in which their desk takes the role of a sole market builders and takes on all the short and long positions. There are some risk measures of this approach as the dealers will know about your identity and you do not have the option to enter between ask and the bid.



Although most people prefer to go through an ECN model, the deal desk approach can also work well if the traders trade at a capitalized firm without several relationships of deep liquidity. The main thing is that you have everything about the platform, dealing firm and trading set-up perfect for all your needs and requirements.



But still it is not wise to take risks and a no deal desk forex approach is more preferable and advisable. You must make sure that the firm you are trading at is solid so that you can withdraw the money by the end. It is a good thing to research on your prospective forex brokers before deciding which approach to choose.


General, Currency Trading, Foreign exchange, forex, forex brokers, forex market, forex trading, tips for Currency Trading. | Comment | Permalink | Trackbacks (0)

ECNs vs. Deal Desks | ForexGen

Posted by: kate @ 09/02 2008, 09:18
What Every Forex Trader Should Know About ECNs vs. Deal Desks



Many Forex traders are concerned about going to an ECN broker and not trading through a deal desk. In this article I hope to shed some light about how this works and what to look for when selecting a broker to make sure that you don't become a victim of un-just dealing practices.An ECN dealing model allows the many market participants to execute trades with each other through an electronic network. That's what an ECN stands for; electronic communications network.

As you know, Forex is a zero sum game so for every winner there is a loser; for everyone going long there is someone going short. So what an ECN does is match up your order with the order of another market participant. You are probably asking yourself the same question as I asked myself when I first found out about an ECN, will there be a seller every time I am buying and vice versa? The answer is that there are market makers and banks in the ECN that are consistently taking on trades and hedging their risk. They may have their own buy and sell programs that they are trading on. These banks allow clients to get better liquidity and tighter pricing in the ECN. One of the most profound benefits of using an ECN is that you get anonymity, as the other participants do not see who is trading on the other end and cannot flag your account and trade directly against you. Another benefit to consider is that you can make your own market in an ECN; meaning you can place orders in between the bid and the ask price. If you are not willing to trade at a particular price point, you are able to place a bid or offer in between the spread in hopes of the ECN finding a fit counterparty this is not a possibility with a deal desk.

currency, economic, euro, forexmarket, oil, stocks, television, The Sterling, trading, usdollar | Comment | Permalink | Trackbacks (0)

Currencies weekly Expectation by ForexGen

Posted by: kate @ 08/25 2008, 06:36

The Sterling (GBP) suffered more than most currencies as Oil losses combined with downgraded data. Q2 GDP was revised down to 0.0% from 0.1% initially forecast. Support was finally found pre 1.8500. Overall the GDP/USD traded with a low of 1.8503 and a high of 1.8780 before closing the day at 1.8520 in the New York session. Looking Ahead, Bank Holiday in UK today. UPDATE GDP/USD BREAKS 1.8500 dropping quickly to 1.8425.






The Australian Dollar (AUD) fell in line with the pullback in

commodity prices. AUD was also under pressure from a wide range of currencies as the market pared longs especially against the AUD/NZD. The Aussie has consolidated between the .8600-.8800 levels against the Greenback. Overall the AUD/USD traded with a low of 0.8649 and a high of 0.8804 before closing the US session at 0.8780.




Gold (XAU) positive stocks and heavy losses in Oil set the tone with the precious metal falling over $10 an ounce. Overall trading with a low of USD$821 and high of USD$838 before ending the New York session at USD$823 an ounce.

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The dollar and Asian stocks | Forexgen

Posted by: kate @ 08/25 2008, 06:36

The U.S. dollar rose broadly on Monday, hitting a two-year high against sterling, as tumbling oil and gold prices left investors scurrying to buy back the currency and sparked a rebound in Asian stocks.
A rally in the dollar stalled last week after hitting a six-month high against the euro, but an upward trend in the U.S. currency is seen intact.
Recent reports showing shrinking or no economic growth in Britain, the euro zone and Japan have boosted the attraction of the dollar as an alternative investment, especially with crude prices trading at around USD 114 barrel, USD 33 below a record high hit in July.
Even billionaire investor and long-time dollar detractor Warren Buffett, chairman of conglomerate Berkshire Hathaway Inc, came to the currency's aid on Friday when he said in a television interview that he had no bets against the dollar.
Asian stocks rebounded from a two-year low as the drop in oil prices lifted exporter shares.
Japan's Nikkei share average jumped about 2 %, with shares of Honda Motor Co leading the way higher.

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All Eyes Cast to The U.S. Calendar | ForexGen

Posted by: kate @ 08/25 2008, 06:35

Monday brings Existing Home Sales that are expected to move higher from 4.85M to 4.92M units waiting to be closed on. Whatever this prints at the market is likely to question how inventory levels are going to drop if Wall Street is not making credit available.
Tuesday brings New Home Sales, expected to hold at 530K, but again the market may only be looking for signs that the U.S. consumer can get credit, more than they are looking at the condition of the housing market. At 14:00 EDT the market also gets to see the Minutes from the recent FOMC rate meeting.
Wednesday brings Durable Goods Orders, and those products manufactured to last more than three years are looking to drop dramatically, reflecting the fact that the U.S. consumer is not consuming to the degree that the economy will need to sustain the U.S. debt levels.
Thursday brings the Gross Domestic Product numbers that reflect the value of all goods and services produced within an economic region. It is these numbers that the Fed is pinning its hopes on to reflect economic growth, and it is these numbers looking to increase from 1.9% to 2.6% that may help the dollar move higher. Quite how the economy is looking to increase by 50% to the expected 2.6% is explained by the fact that this preliminary read is the first of three that run over the next quarter; Preliminary which includes a 70% guess at the number, Advanced which is a 30% guess at the number, and Final, the actual number with no guess work making it up. This 2.6% is made up of 70% guess-work, and that may get slanted to the positive for many reasons.

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US Stocks Rally Taking Dollar For The Ride| ForexGen

Posted by: kate @ 08/25 2008, 06:23

U.S. Dollar Trading (USD) rallied before Fed Chief Bernanke's speech on speculation that Lehman Brother's may receive capital from the Korean Development Bank. Also supporting was a massive drop in Oil on the back of easing geopolitical concerns and reopening of major pipelines in Turkey. Bernanke took some of the wind out of the Dollar's rally though with comments that slowing US growth would mediate inflation concerns indicating that the Fed would be able to keep target rates low for an extended period of time. In the U.S. share markets, the NASDAQ was up 34 points (1.44%) and the Dow Jones was up 197 points (1.73%). Crude Oil closed down $6.59 ending the New York session at $114.59 per barrel. Looking ahead, July Home Sales are forecast at 4.9 Million up from 4.86 Million in June.


The Euro (EUR) pulled back from Thursday's highs as Oil retreated and the USD rallied broadly. Eurozone data did little to support with the June Current Account blowing out to -8.2 Billion. Industrial Orders for June were better than forecast although still negative, down -0.3% in June or -7.4% Y/Y. Overall the EUR/USD traded with a low of 1.4759 and a high of 1.4909 before closing the day at 1.4790 in the New York session.


The Japanese Yen (JPY) reversed Thursday's losses gaining all day to reclaim the 110 level driven by buoyant equities and renewed risk appetite. Monetary Policy Minutes showed Bank of Japans concern with rising global Inflation and growing downside risks. Overall the USDJPY traded with a low of 108.33 and a high of 110.15 before closing the day around 109.90 in the New York session.

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