Understanding Forex Spreads

Spreads should always be considered in conjunction with depth of book. Oddly enough, when it comes to economies of scale, forex doesn't even act like most other markets. On the inter-bank market, for example; the larger the ticket size, the larger the spread is. So when you see a 1-pip spread on an ECN platform, you have to wonder if that spread valid for a $2M, $5M or $10M trade, which it probably isn’t. In many cases, the tight spread that is offered applies only to a capped trade sizes that are very inadequate for most of the common trading strategies.

Forex Trading

They create vast fortunes easily trading foreign currencies.
Thereafter, using this great wealth, they create factories to manufacture consumer goods and products and hire you, Joe Bloke to work in those factories, banks and jobs at minimum wages.

So, it is no wonder why they don’t want you to know about the REAL TRUTH and “SECRET” on how to generate great wealth through foreign currency trading.

If you know how to trade foreign currency and generate $100,000 monthly for life, will you be idiotic, naïve and crazy to go to work at these DEAD END jobs to earn minimum wages and be paid nickels and dimes?

So, there has been a persistent organized campaign by the powers that be, the Money Elite to KEEP AWAY AND HIDE these “SECRETS” of creating vast wealth from foreign currency trading.

Foreign Currency or Forex Trading

Foreign currency trading is the most profitable and powerful way to make money today in the world.
It is a 2.5 trillion dollars daily global market and business.
For this reason the knowledge and the secrets of how to do it successfully have been kept away from the public for thousands of years.

This is because it is the jealously guarded “SECRET” of how the “Money and Power” Elites, the multi-national and multi-billion dollars corporations, largest banks and governments of the world, the “Movers & Shakers” of International Banking & Finance, Business moguls & Tycoons, CEOs of major Corporations, secret societies and the privileged blue bloodlines of the Wealthiest Families of Europe and the Americas make their money and get rich.

Why is Forex trading training so important?

(1) The investor or trader is definitely not going to become a walking encyclopedia at the completion of the training, but is going to be far better equipped to deal with the ups and downs of foreign currency trading than before!

(2) If this business is treated as a continuous learning platform, the investor/trader is heading for more gains and less losses. He/She will have a better idea about planning good strategies so that risks are minimized.

(3) By getting Forex trading training, the trader/investor has an edge over others in the same community. After all, he/she is enhancing his/her trading skills.

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.

ForexGen Money Manager

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

ForexGen Introducing Brokers

Introducing Brokers may be individuals or institutions who gain their income from the commissions and/or rebates by introducing customers to ForexGen trading.

WHAT are the advantages of being an INTRODUCING BROKERS with ForexGen?

* Providing the most huge income sharing plan
* Providing several ways for our IB's to charge commission.
* ForexGen IB can also charge commission for each lot the traders execute.
* Moreover, ForexGen IB is able to increase the spread for all or certain clients and have ForexGen Investments rebate the difference.

In case the IB does not increase the spread or charge their clients a commission, ForexGen rebate the IB a minor predefined amount for every client's executed lot.
Commission is paid out every month.

Individualized service

[ForexGen] offers our IB's individualized service created according to the individual needs and specified business situation for each IB.
Our Introducing Broker program provides a highly organized program for individualized services and organizations in order to introduce their clients to the online foreign currency exchange market, moreover they will enjoy the benefits of being a part of the ForexGen family.

ForexGen offers 1 pip spread on 10 pairs with high trading techniques that make ffers 1 pip spread on 10 pairs with high trading techniques that make [ForexGen]
incomparable to any other rival.

Bonds, Dollar Hold Steady Light Post-Holiday Trade

With few investors trading and fewer indicators to base trades on, the dollar and government bonds held tight Friday.
Treasurys resumed trade Friday after the market was closed Thursday for the Christmas holiday. Some bond market participants took an extended break, and many foreign investors are off for Boxing Day.
Despite a record auction of $120 billion in bonds earlier in the week, the huge increase in Treasury supply has done little to move bond prices significantly lower or yields higher off their all-time lows.

Private investor and corporate demand for government bonds remains high, as the stock and commodities markets continue the volatility that has persisted throughout the year and especially in the past three months. Looking for a safe alternative, investors have opted to buy up Treasurys with the hope that government bonds will provide a secure investment - if yields are low.
As a result, Treasury bonds have been one of the best performing assets this year, returning 14.3% to investors, according to a Lehman Brothers index. Investors holding S&P 500-based index funds, on the other hand, have lost more than 40% of their investment so far in 2008.
Most economists say dour economic news will continue well into next year, and analysts forecast Treasurys will continue to rise for at least several more months, pushing yields even lower. Yields on the 2-year, 10-year and 30-year Treasurys all hit record lows last week before rising slightly in the past three sessions.

Bond prices: The 10-year note edged up 15/32 to 114 10/32, and its yield fell to 2.16% from 2.14% from Wednesday. Bond prices and yields move in opposite directions.
The 30-year long bond rose 20/32 to 138 22/32, and yielded 2.6%, down from 2.63%.
The 2-year note rose 1/32 to 99 31/32, and its yield dropped to 0.9% from 0.92%.
The yield on the 3-month note rose held steady at 0.015%, though it has been hovering around 0% for two weeks. Yields near the zero mark on short-term bills are an indication that investors are completely risk-averse, prioritizing safety above profit.

Libor rates, which have fallen considerably since the credit crisis' peak in late October, were not tallied Friday due to the bank holiday in the U.K.
Dollar: The U.S. dollar fell very slightly against the euro but rose against the yen and pound as investors digested a barrage of economic data ahead of the holiday.

Analysts said dollar movements were very subtle due to such low trading volume, and do not reflect any trend or economic news. Markets were mostly closed abroad.
The euro edged 0.3% higher against the dollar to trade at $1.4072, from $1.4028 late Wednesday in New York.
The British pound fell 0.2% to $1.4697 from $1.4728.
Against the Japanese yen, the dollar rose 1.5% to ¥90.57 from ¥90.96.

The Concept Of Leverage In Forex

One of the main attractions to trade forex is big leverage and allows currency traders to borrow money and use that money to profit from the fluctuations in exchange rates between two currencies. The leverage usable in forex trading

Because of the big leverage in foreign exchange, traders are able to make large investments without a huge amount of trading capital, whereas in other financial markets such as the stock market, investors would have to pay 50% of the full amount for each share they were investing in.

Forex provides much more leverage than stocks or futures, allowing positions to be leveraged up to 100:1 or even 200:1 depending on the forex broker and the size of the position taken. This means that if a currency trader wanted to buy a “lot” worth $100,000, with 100:1 leverage, the trader only has to put up $1,000 of his own money into his margin account! With leverage, you can achieve higher returns on a smaller market movement. is one of the highest that traders can obtain. Leveraged trading means that you are not required to pay the full value of the trading position but only small part of it.

Forex Money Management and The Use of Leverage

Last week we talked about the use of a 1:2 risk to reward on our trades and the use of a trailing stop to manage those trades in an attempt to be consistently profitable. But we also have to keep track of our account balance so we have funds to be in a position to take the solid trading opportunities we find.
Too many new traders will open a trade using too much leverage in an attempt to get a big win. More often than not, these trades end up as losing more money than was necessary. I recommend only risking about 5% of your account balance at any one time. If you have a mini account with a balance of $2000, then you should risk no more than $100 on a trade. This way your losses will not keep you from having the funds to take the next trade.
This does not mean to open 10 trades at once and risk $100 on each one, but to risk no more than 5% at any one time. Buying the GBP/USD and the EUR/USD at the same time is not really that different. You are looking for USD weakness in both trades which means that you are more than likely to profit on both or to lose on both. A better approach would be to open one trade risking 5% of your account balance and not open another trade until the trailing stop on the first trade is moved up to breakeven.
Then your risk on the first trade is theoretically at zero and you can now risk that 5% on a new trading opportunity. If the market is trending strongly and offering many trading opportunities, you can take advantage of the situation by having multiple positions open at the same time while still risking no more than 5% of your equity
So when you think of money management, think about how much you are risking on the trade and how much of your account balance you are risking. They are both key elements to successful trading and should be an important part of your trading approach.