AUD Gains on U.S. Credit Market Losses | ForexGen Signals

Friday, September 26, 2008

The Australian currency rose its highest value in last 25 years against the U.S. dollar as the credit markets continued to lose on the mortgage lending crisis in the United States.

The Australian dollar (also referenced as Aussie in the Forex slang) showed a fifth day of growth in a row and reached the maximum level against the dollar sine January 1983. Investors are afraid that the U.S. banks are short of capital and the attractiveness of the financial sector will continue to fall further.

AUD also rose against the Japanese yen, but the growth was moderate and it’s only second straight day of growth on AUD/JPY. Bank of Japan held the interest rate at 0.5 percent today, downgrading the economic growth forecast.

The good thing about Aussie, that is noted by many currency strategists, is that it remains almost untouched by the financial crisis in U.S., while such currencies as Great Britain pound and euro feel the echo of what’s happening in the States.

AUD/USD rose from 0.9714 to 0.9798 today as of 7:54 GMT. AUD/JPY opened at 103.13 today and is currently trading near 103.28 with a daily high at 103.42. AUD/NZD remains almost unchanged today, trading near its open level — 1.2714, but the intraday spikes are visible in both up and down directions.

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5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
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Markets Expect Further Losses from Banks | ForexGen

The U.S. dollar fell against the Japanese yen today for a second day as the global financial markets expected the U.S. banks to report further losses and decrease the attractiveness of the world’s largest economy.

Dollar reached its all-time low against euro yesterday after Ben Bernanke said that the economic risks hadn’t diminished yet. Today, investors are waiting for the quarterly earning reports from the large U.S. banks — Wells Fargo & Co., Merrill Lynch & Co., JPMorgan Chase and Citigroup Inc. These reports may show that the whole industry is still suffering from the mortgage lending crisis.

The rising instability of the financial markets and recession fears spurred the closing of the so called carry trade positions on the Forex market. Yen-based carry traders use cheap yen loans to buy high-yielding assets including the high-yielding currencies. When the economic stability diminishes such positions become more risky and traders close them.

Analytics believe that the dollar-selling may continue until the next quarter reports wave as the current situation will set the trend for at least next 3 months. Euro and Japanese yen may both benefit from this sell-off and the large hedge funds may correct their Forex positions accordingly.

USD/JPY dropped from 104.64 to 104.08 as of 10:08 GMT today after losing almost 1.5 percent yesterday. EUR/JPY fell from 166.52 to 165.75 today after losing losing almost 1.4 percent yesterday. EUR/USD rose from 1.5911 to 1.5933.

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Yuan Declines for a First Time since Monday | ForexGen Signals

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many Demo accounts , and Live accounts as you need. All accounts can be created online and
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The Chinese Yuan showed the first declining day since Monday on Forex today as the traders were driven by the speculations that the government will let national currency weaken slightly to support exporters.

Yuan declined for the first time in last three days after release of the report that the GDP growth decreased in the second quarter of 2008. Such situation may trigger Chinese financial authorities to turn out from the anti-inflation fight to the exporters protection.

The reference rate set by the People’s Bank of China was also lower today at the currency market’s opening. A further slowdown in exports will make China to rethink recent yuan’s appreciation to protect the country’s producers.

Gross domestic product gained 10.1 percent in the second quarter of the year, the slowest pace since 2005. First quarter showed 10.6 percent gain.

USD/CNY rate rose from 6.8155 at yesterday’s close level to 6.8315 as of 8:42 GMT today. The highest level for today was at 6.8329.

ForexGen 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.

Knowing Some Basics Concerning the Foreign Exchange Market | ForexGen Tips

Monday, September 22, 2008

We come face to face with our local money every day. The time will come when some of us will need to make or receive a payment in a foreign currency.

To jump this hurdle, we go to the bank to handle the currency exchange, or to a number of foreign currency exchange companies we can find on the internet, who will invariably quote far better rates of exchange. Believe me they will, they could not exist if they did not offer a better deal.

You do not have to be a mechanic to know some essential words about a car like the steering wheel, the hand brake, clutch pedal, the engine etc. But you do need to know these fundamental words to be able to understand what they refer to when becoming a car driver otherwise life would be hard.

Similarly, it is important to know a little about the foreign exchange market so that when the day comes and you will be need to buy foreign currency to get that house of your dreams or anything else abroad, you are not at a disadvantage.

The FOREIGN EXCHANGE MARKET also called FOREX or FX, has no trading centre.

Unlike the London Stock Exchange or the New York Stock Exchange centres, it has no fixed abode, but manages very well and is extremely active.

There are hundreds of brokerage companies and banks, who deal between themselves including big corporations. Put these on one level. On another level, there are smaller agents who handle the buying and selling of the foreign currencies, going by the rates as signalled by Reuters or other agencies. These rates are aligned to the actual events taking place non stop in the market.
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The difference between these two levels is a wholesale and retail classification as existing in other trades. When the media talk about the foreign exchange market, it is the wholesale level they refer to.

Foreign exchange currency institutions have better access to obtaining a more advantageous rate of exchange than the ordinary small company or the man in the street.

The foreign exchange market operates 24 hours per day.

BID is the rate at which a dealer is ready to purchase the base currency.

OFFER is the rate at which the dealer is ready to sell the basic currency.

The difference between the BID and ASK price is called the SPREAD.

The MARKET MAKERS make the profit from the spread. They make no commission.

BASIC CURRENCY is the currency against which the other currencies are quoted.

BULL MARKET refers to a price rising market.

BEAR MARKET refers to a declining price market.

BOTTOM: a description of a price decline meeting heavy support against further price decline.

CABLE: When the steel cable was connected under the Atlantic in 1850 thus linking USA with UK enabling telegraph transmission between the London and New York Exchanges, it was called ATLANTIC CABLE. Satellite and optic cables are now used, and the word CABLE refers to GBP/USD currency pair rate.

CROSS RATES: This refers to currency pairs where the USD is not included like GBP/EUR or GBP/JPY

MARGIN refers to a deposit in cash required to cover the possibility of loss the client may encounter trading the foreign exchange.

MARGIN CALL refers to a requirement for additional money, to make up the minimum cash deposit needed to cover any losses the client may encounter trading in the foreign exchange market.

VOLATILITY refers to the extent of price fluctuation.

There are of course, many more terms used in the foreign currency business, but you have here a selection which will help you to know some of the basics.

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ForexGen serves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.

Improve Day Trade Performance by Sorting Winners and Losers

Every daytrader is looking to improve performance. Some are discretionary traders while others use a systematic approach. Both can use some analysis to improve their trading results.

Optimizing trade performance starts with analyzing past trade data.It is very important to track every trade and its characteristics. After building a database the analysis can begin. The first step is to sort the trades. An important first sort is by winning and losing trades. Winners and losers share characteristics and careful analysis will unlock better overall system performance.

Two prominent characteristics of winning trades are time and price. One of the most important goals after a trade has been executed is defining it’’s likely outcome. Sorting previous trades can help accomplish this goal. Isolate all the winning trades and sort by length of time in the trade until closeout. Find the average time in the trade. Compare that number to the same calculation with the losing trades. The winners have a longer average time than the losers. Losers will tend to be quick.

It seems like this piece of information is minor. But, it can be a powerful tool to the daytrader. If you delve deeper into the data in excel you can isolate a time frame that defines when only winners survive. Create a histogram that gives the winning probability by elapsed time in the trade.

Using this piece of information can improve your performance in a couple of ways. Consider different trade entry rules that don”t commit your entire capital on the initial signal. Use simple time checkins to add size to your trade to reach your optimal trade size. It can be a simple as buying every five minutes as long as the trade is alive. By staggering the entry, the quick losing trades will automatically have lower size than your long winning trades. The average winner will improve as the average loser will decrease. This lowers the overall drawdown potential . It will also raise your expected return.

An old trading maxim is to cut winners short and let winners run. Knowing your time performance data helps accomplish this goal. If you track the PL of your trades on every bar, it leads to another discovery. Graph the results and look at the chart. The winning trades not only last longer but have an upward slope. The losers will have a downward slope. Employing a trailing stop will cut the losers off but allow the winners to run by having a trailing stop below the winning slope.

Analyzing past trades is the key to improving results.

Forex Currency Trading -The Latest Vogue | ForexGen Tips

Forex currency trading is something that is almost becoming a sort of fad in many parts of the world. Before you take a plunge into forex trading it is always preferable that you equip yourself with at least the basics of it. Such knowledge is always bound to stand by you in the long run. You should for instance always educate yourself about the currencies that you intend to trade. You should always know a lot of things in detail about the country whose currency that you intend to deal with in the forex market. Such knowledge will help you in predicting the market tendency much more accurately.

Experts in the field always recommend beginners to initially go in for smaller accounts and then gradually move on to higher accounts. It is because in the field of forex trading it is only through practice that one gets perfect. Starting off with a mini forex account for example is a good option which lets you minimize your losses while you also get to learn about the intricacies of the forex market.

It is only through constant practice and with experience that you will be successful in the forex market. This is one reason why there are more successful corporations than individuals when it comes to the forex market trade, unlike the case of the stock market. Experience teaches you a lot of things in the field of forex currency trading. For instance margin trading by beginners is bound to make them lose a lot of money. Until and unless someone is sure about the entire process of forex currency trading, you should stay away from things such as margin trading.

Forex currency trading is a complex field involving a lot of players such as dealers, global money managers, international brokers and multinational corporations. There are many instances when even the governments of several countries intervene or get involved in the process, particularly when there is a need to provide stabilization to their respective currencies. It is for this reason that you should first of all equip yourself with the adequate knowledge before you deal with forex currency trading. Experts therefore always recommend that you test forex trading strategies initially with a demo account before shifting to bigger accounts. You should always remember that there is a significant amount of risk of loss involved in forex trading. A realistic evaluation of your expectations is what you need when you deal with forex currency trading.

ForexGen - 3 Factors You Should Be Careful Of While Online Currency Trading

It is in everyone’’s fortune to face some danger in the course of their lives. Some emerge victorious and some fail. Nevertheless it is worth it if you learn from your experiences.

When it comes to currency trading, traders may fall into unfortunate circumstances which may lead to a huge loss. This can be avoided by being well informed and possessing a good presence of mind.

Trade always begins with a certain amount of money termed as “capital”. In the case of currency trading, the capital required is often large. Therefore, anyone interested in online trading must have a well drawn out plan and strategy in order to avoid serious loss. This involves a financial plan which must state the amount of cash you are willing to part with. To check the proper functioning of your business, you can even hire a broker or a money manager.

Security Risk

Your online trading establishment is posed with a risk of being hacked into. This will result in a lot of confidential information finding itself in the wrong hands. Further, the hacker is free to alter your profile, its strategies and schemes. Thus, it is vital to choose software which has the necessary tools to combat such risks.

Don”t trust everybody too easily

As an online trader you must be weary of the different individuals you may come across. You are solely responsible for your actions and the consequences they may have on your business. Not every one who calls himself a friend has the best of intentions. They may cause serious damage to your business resulting in you incurring a great loss. Therefore, you must tread these grounds with caution. Never make deals you are uncertain of to avoid heavy loss for hard work.

Psychological aspects

It is imperative to keep your mind clear and stable to avoid making hasty decisions you might regret. Even though it is said that trading is very mentally demanding, some might find it very relaxing. But you need to be able to identify the hazards it may pose to your system. Stay clear of the tension zone.

Before delving in a field of your interest, educate yourself, plan and prepare yourself to conquer any obstacle that might come in your way of success.

Currency trading can make you a good amount of money provided you play your cards right. It can make you lose the money as quick as you can make it, on the other hand. The golden rule is never to invest money that you cannot afford to lose. When you stick to this rule, it becomes more of a mind game than a business, and you are able to think more objectively.

ForexGen 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.

Forex Market | ForexGen Academy

Thursday, September 11, 2008

As a speculative trader you can use ForexGen Customer Indicators, you are not actually buying or Selling currencies.

With ForexGen News Center you do not have to have $100,000 US. Dollar in your bank account to give in exchange for $130,000 Euro dollars. Instead, you are speculating on the value of one currency with respect to another. , ForexGen Institutional Tools You are, essentially, betting on which currencies will increase in value and which will decrease in value - you are betting on the actions of those players who are actually exchanging the currencies.

ForexGen platform features While understanding the fundamental factors that contribute to the value of a country's currency is important for you, it is not nearly as important as understanding the factors that contribute to the major players' decision.

Use ForexGen Institutional to ease Opening Live Account

Automated Overnight Sweep Investments

Wednesday, July 16, 2008

Managing daily trading and cash flow balances can be difficult and may result in unanticipated balances in your operating account at day’s end. ForexGen's broad range of Automated Overnight Sweep Investments allow you to fully or partially sweep your end-of-day cash automatically into an interest-bearing investment specifically chosen to meet your needs. Balances are made available at the opening of the next business day.
Together with a ForexGen representative, you define your overnight investment account structure, choosing the appropriate vehicle and amounts to invest. ForexGen follows your instructions for investing excess funds. You may choose to receive principal and interest in your accounts the next business day (the direct debit option). Alternatively, you may opt to have accrued interest credited to your account the first business day of the following month (the linked account option).
Overnight investment statements detail your investment position for each day of the month, along with daily interest earnings. Statements also reflect the impact of back-value adjustments on each day’s closing balance and associated sweep totals.
Why use Automated Overnight Sweep Investments?
Maximize yield on excess end-of-day balances
Optimize next-day liquidity
Broaden overnight investment choices
Minimize your cash management costs
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ForexGen Institution

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders.
Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment.
ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services.
A rich choice of managed accounts are also available, please check our Managed Account Section
ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast deposits and withdrawal, a local support in more than 18 countries, and most of all, solid funds security.
Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.
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ForexGen Institutional Trading Floor

ForexGen is the first centrally-cleared to serve the evolving needs of the High End FX market, including speed, efficiency, centralized clearing and complete anonymity.
A Powerful Combination
ForexGen represents the combination of a central counterparty model and clearing function of ECN, with its global distribution network and straight-through processing capability. It is supported by well proven technology which offers elements not found in many other FX platforms:
centrally cleared OTC trading
fully anonymous execution only granted for institutional clients
choice of access through the rich ECN
industry-leading matching engine
Meeting the Needs of a Changing Market
ForexGen is targeted to meet the growing FX needs of banks and other financial institutions including traditional banks and their clients of asset managers, proprietary trading firms, leveraged funds, currency overlay managers, hedge funds and CTAs. It is designed to provide increased price transparency, introduce trading anonymity, and heighten FX market accessibility. Combined, these three features hold enormous potential to deepen FX market liquidity and market efficiency for the next generation of FX trading.
ForexGen offers bank participants unprecedented access to its platform through a variety of means including:
Powerful API
Corporate version of our Trading Stations
Corporate version of our MultiAccount Client
Automated Trading Systems
Access to our High End Analysis Tools
Providing Access to All Major Currencies
ForexGen will initially support spot FX transactions in all major currencies against the U.S. dollar: the euro, Japanese yen, British pound, Australian dollar, Swiss franc and Canadian dollar. all cross currency pairs are also be supported. CFDs and wide range of quality instruments are supported.
For banks, contact us today to setup a meeting with one of our Executive Account Managers
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Corporate Managed Accounts

Why Corporate Managed Accounts?
Many investors find it hard to cope with the currency markets. Trading is a science and needs a lot of education, experience and discipline. To be successful a currency trader must follow market movements 24 hours a day, six days a week. Many Forex investors do not have the time, experience or desire to trade with this intensity themselves.
Forex Managed Accounts were created for investors with risk capital who do not necessarily want to trade on their own. In a Forex Managed Account the positions belong to your portfolio alone. Unlike mutual funds or hedge funds which commingle your funds with other investors, a Forex Managed Account is in your name and all or part of your funds can be redeemed within one day. There is no lock up period.
The managed account only holds your positions and allows you to follow a cost-basis for each of the currencies in your account. Based on your long-term goals, risk tolerance and time horizon, you can select a ForexGen currency professional with your trading outlook to actively manage your portfolio. Whether you're interested in a conservative or aggressive program, you will find the trader who will suit your risk parameters.
Advantages of Corporate Managed Accounts
Profiting In All Market Conditions: Unlike equity and fixed income managers, a currency hedge fund manager employs both long and short positions with equal facility. In currency trading there is no difference in profit potential between a long and short position. Because of this characteristic a currency portfolio is not 'biased long' but able to profit under any market conditions.
Diversification: The performance of equity and fixed income investments in one country is often highly correlated with the performance of equity and fixed income investments in other countries. As a result, global portfolios composed solely of equity and fixed income investments lack full diversification, even if they are geographically dispersed. Investing in currencies gives investors access to markets beyond equity and fixed income investments, providing more complete diversification and a reduction in portfolio risk.
Optimization of ROI: When combined with an investor's existing portfolio of equity and fixed income instruments, the Forex Managed Account Program reduces the volatility and risk of that portfolio while enhancing long-term returns.

Risk Management: Investing in currencies incorporates disciplined risk control procedures in order to limit risk and achieve the smoothest possible growth in its investors' account value. Leverage is an acceptable and useful tool when used judiciously and with strict risk management techniques. Investors in currencies are therefore able to achieve a high rate of return with a level of risk control that is not possible with traditional "buy and hold" investments. Although returns are far from guaranteed, professional hedge fund managers tend to out perform individual speculators by their deployment of disciplined money management techniques and a system trading approach. Professional hedge funds also tend to use their leverage more judiciously thus avoiding sudden catastrophic losses.
Read more through http://institution.forexgen.com/