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A Forex Market Order

This is an order to buy or sell a given currency at the current market price. This means that the trader will be buying at the “current” ask or selling at the “current” bid that is quoted. The market order can be used to enter or exit trades. When placing a market order, the currency trader specifies the currency pair that he wants to buy or sell and the number of lots or contracts he wants to trade.
With most currency trading platforms, this order is placed with a single click and is executed instantly at the current rate quoted.

Often small market makers are unable to fill market orders instantly and usually re-quote traders. This can be a major source of problems as unnecessary costs of trading are incurred that can affect performance over time and the profitability of each trade.

However, this type of order is very popular with certain trading strategies i.e. strategies which react to market conditions and require instantaneous execution of a trading position, ether to enter or exit. Therefore it is important to make certain you are trading through a firm that have the necessary credit lines within the Interbank market to attract large hedge funds and money managers as clients. This will ensure you can obtain the necessary liquidity required to execute market orders regardless the size, with no hassle.

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We keep contact with our clients to ensure that we are on the right track. Leading our client relationship to success is our focus.
Let [ForexGen] prove to you that you have taken the right step by choosing our partnership.

Currency Exchange Tutorial

What are currency pairs?

Currency pairs are units of 2 currencies involved in a foreign exchange trade. For example, if you want to sell U.S. dollars to buy Euros, you would look at the exchange rate quoted for the EUR/USD currency pair. Or, if you wanted to sell Euros to buy U.S. dollars, you would look at the exchange rate quoted for the USD/EUR currency pair.

You might thinking: “Aren't they the same thing?” Well, they almost are, but you must look at the correct pair, in the correct order, based on the currency being purchased.
There are two reasons for doing this:

First, it is easier to calculate the results of your exchange in terms of how much of the base currency you can purchase with your 'quote' currency. Your base currency is the currency you intend to buy, and the quote currency is the currency you intend to sell in exchange for the base.

When quoting an exchange rate, your broker will list the base currency first in the pair, and the quote currency second.

This means that when you see a pair like EUR/USD, you are seeing the cost of 1 Euro in U.S. Dollars. An exchange rate quote of EUR/USD = 1.4436 means that 1 Euro costs $1.4436 in U.S. Dollars.

Likewise, the USD/EUR pair indicates the cost of 1 U.S. Dollar in terms of Euros. An exchange rate of USD/EUR = 0.6834 would mean that 1 U.S Dollar costs 0.6834 Euro.

The second reason for looking at the correct buy/sell ordered pair is that you'll want to know the difference between the 'bid price' (exchange rate) and the 'ask price' (what the market makers want for the currency).

The difference between bid price and ask price make up what is known as 'the spread'. Forex traders are subject to spreads when opening or closing trades in the buying position.

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6. ForexGen offers a free trial Forex [demo account] that allows you to test your skills and practice without risking real money.

We consider every client as a special case, a VIP and a partner. A client's profit is our success and a client's loss is a significant call of action for us. Customer care is the heart of our business, we know every client on personal bases as we provide 24/7 customer support.
We keep contact with our clients to ensure that we are on the right track. Leading our client relationship to success is our focus.
Let [ForexGen] prove to you that you have taken the right step by choosing our partnership.

Retail Sales, Fraud Case Worsen Auto Bailout Flop

Uncertainty over a bailout of U.S. automakers, and declining U.S. retail sales added new headaches for the world's financial stewards, already overwhelmed by recession, tight credit markets and a debilitated White House.

Meanwhile Wall Street was coping with the shock waves of a suspected $50 billion fraud that may rank as one of the biggest ever, Japan weighed a currency intervention, OPEC debated production cuts and Europe agreed to a 200 billion euro ($268 billion) stimulus package.

"This is ugly and getting uglier," Peter Kenny, managing director at Knight Equity Management in New Jersey, said on Friday.

"Pick your poison. Do you want to talk about autos, or some of the macroeconomic data we've had coming out or do you want to talk about Madoff? If there's something positive here, share it with me. I see nothing here that is going to give anyone any reason to buy the market."

Bernard Madoff, a quiet force on Wall Street for decades, was arrested and charged on Thursday. The former chairman of the Nasdaq Stock Market also ran a hedge fund that U.S. prosecutors said racked up $50 billion of fraudulent losses.

The U.S. Senate late on Thursday failed to enact a $14 billion auto bailout previously approved by the House of Representatives.

That prompted concerns that one of the last bastions of the U.S. manufacturing base could be forced into bankruptcy or collapse, jeopardizing millions of jobs and having repercussions worldwide.

General Motors Corp and Chrysler LLC had sought billions of dollars in immediate aid to avert collapse, while Ford Motor Co wanted a hefty line of credit.

'BAD CHRISTMAS'

"It's going to be a very, very bad Christmas for a lot of people," said U.S. Senate Majority Leader Harry Reid, a Democrat who favored the bailout. "I dread looking at Wall Street tomorrow. It's not going to be a pretty sight."

The Bush administration warned that the U.S. economy could not withstand such a collapse and said it might be willing to provide emergency funding to rescue the industry, possibly from the $700 billion financial bailout fund known as TARP.

That prevented a precipitous drop on Wall Street. The Dow was down 0.9 percent and the S&P 500 was off 0.7 percent.

Tokyo's Nikkei average fell 5.6 percent after Japan expanded a fiscal stimulus plan and bolstered a war chest for bank rescues to $131 billion. (nT91372)

But Tokyo kept markets guessing on whether it would intervene to stop a surging yen from pushing the economy deeper into recession.

European stocks were down 2.6 percent after European Union leaders sealed the 200 billion-euro stimulus package, which had exposed deep differences between Britain and Germany.

The euro zone clearly needs a boost -- data on Friday showed industrial output dived 5.3 percent year-on-year in October.

The United States was then hit by additional troubling indicators when retail sales fell for the fifth straight month and producer prices dipped 2.2 percent, raising the specter of deflation.

Even China has been unable to avoid damage.

Beijing launched a 4 trillion-yuan ($586 billion) stimulus plan on November 9 and followed up on Wednesday with a pledge after a strategy meeting to ramp up public spending and cut taxes.

Senior officials were confident of hitting 8 percent growth in 2009 -- the rate deemed necessary to create enough jobs for the millions joining the workforce each year.

Others disagree. The World Bank forecasts 7.5 percent growth next year; Goldman Sachs expects a rate of just 6.0 percent.

The good news for consumers was falling oil and commodities prices.

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Euro Falls Slightly Against Dollar

Euro falls slightly against dollar as investors anticipate interest rate cuts

BERLIN (AP) -- The 15-nation euro fell slightly against the U.S. dollar as markets anticipated rate cuts from both the European Central Bank and the Bank of England later Thursday.

In morning European trading the common currency bought $1.2620, down from $1.2655 late Wednesday in New York.


The British pound fell to $1.4599 from $1.4722 yesterday, while the dollar weakened slightly to trade at 93.08 Japanese yen from 93.09 yen in New York.

Both the ECB and the Bank of England are expected to cut their interest rates when they meet Thursday.

Though lower interest rates can jump-start an economy, they often weigh on its currency as traders transfer funds to countries where they can earn higher returns.

"Aggressive cuts are widely expected by both parties and this has been factored into prices so look for volatility initially if we don't see the anticipated 100 point cut in the U.K. and a 50-point cut in the euro zone," said James Hughes at CMC Markets. "However, it's worth bearing in mind that some speculation is circulating that an even softer stance could be adopted and this would certainly end up weighing on the respective currencies if it proves to be the case."

Many observers think the ECB will reduce its benchmark rate by half a percentage point to 2.75 percent -- though some are predicting it will cut it by three quarters of a point.

"Just a 50 basis point rate cut by the ECB should be mildly disappointing for markets, although investors would refrain from selling heavily the euro ahead of a new shocking jobs report in the U.S. tomorrow," said a statement from Milan-based UniCredit.

The Bank of England is expected by many to lower its rate by a whole percentage point to 2.00 percent, which would be equal to its lowest level since the bank was founded in 1694.

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What is an Expert Advisor?

It is a mechanical trading system (MTS) written in specialized language which is MetaQuotes Language 4 (MQL 4) and linked to a trading chart. An Expert Advisor has the capability to notify traders of the trading, chances and also to automatically execute positions in their trading account, sending them directly to the trading server. Like all experts systems, Expert Advisors supports the testing of strategies with historical data, with the trade entry/exit points being represented on the charts. Furthermore, the executable code of the Expert Advisor is stored separately from its source text

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Post of The Day USD/CAD

Question:
Here we can see a Double Top occurring on the USD/CAD chart. The MACD indicator shows the first peak, but gets nowhere near on the second peak. This to me indicates that the trend will turn and shows a good time at which to sell.






















Power Course Instructor’s Response:

Well done...

This is a dramatic example of divergence on this USDCAD pair. Coupled with a double top, this would be a solid indication of a potentially bearish move. It may not be an all out change in the trend, but, as can be seen on the chart, a pullback of several hundred pips did occur after the double top.

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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.

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5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. ForexGen offers a free trial [Forex demo account] that allows you to test your skills and practice without risking real money.

Australian Dollar Technical Outlook

There remains potential for a large recovery back to the mid .70s given the 5 wave drop from the top (waves a and b of an a-b-c correction would be close to complete).

Bulls may attempt to ‘pick’ this bottom given that the AUDUSD has held above the October low.

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China Currency Issue Heating up on Eve of US talks

A decline in the Chinese currency's value against the U.S. dollar after months of hovering in a narrow range is threatening to bring the long-simmering issue to full boil as U.S.-China economic talks get under way in Beijing.
In Washington, U.S. Treasury Secretary Henry Paulson said Tuesday that Beijing must keep letting the yuan rise against the dollar to help ease trade tensions with the United States.

Signaling potential for a renewed tensions over the issue, the state-run newspaper China Daily ran a front-page article Wednesday morning headlined: "US urged not to harp on currency issue at talks."
It cited analysts arguing that Beijing might need to devalue the yuan, thus making goods made in China cheaper, to help its exporters weather the global recession.

"Pushing for a rising yuan now will be a lose-lose move for both China and the U.S.," the China Daily cited Zhou Shijian, a researcher at Beijing's prestigious Tsinghua University, as saying.
He said China would prefer to see the high-level talks Thursday and Friday in Beijing, known as the Strategic Economic Dialogue, focus on cooperation in energy and the environment.

The Chinese yuan was at 6.8783 late Wednesday in Shanghai. It closed last Friday at 6.8254 but jumped to above 6.88 Monday last Friday. The currency last traded above 6.8800 in June, and had hovered near 6.8300 in recent months after advancing against the dollar earlier in the year.
American manufacturers have long contended that the yuan is undervalued, giving Chinese companies an unfair edge and contributing to the record trade gap between the two countries. President-elect Barack Obama has said he will pressure Beijing to end what he calls the manipulation of its exchange-rate system.

China keeps the yuan trading in a relatively narrow range against the U.S. dollar, saying it needs to keep its currency stable while gradually loosening controls. It gained points with its neighbors for refraining from devaluing the yuan during the Asian financial crisis of the late 1990s.
Propping up exports runs counter to Beijing's policy of focusing on stimulating domestic demand. But the failure of thousands of factories hit by a slump in demand for Chinese-made products has raised worries over politically sensitive job losses.

Before this week's abrupt decline, the yuan had risen in value by more than 20 percent against the dollar over the past three years, taking some of the heat out of the issue. The U.S. dollar's rebound against the euro and other major currencies had further boosted the yuan's value, adding to pressure on exporters.
"If the dollar continues to rise against the euro, we will have to further adjust the renminbi," the China Daily and other reports cited Pei Changhong, director of the government-affiliated Institute of Finance and Trade Economics, as saying at a news conference in Beijing.

He called such adjustments "reasonable and necessary."

The Chinese currency's sudden drop Monday, when it fell 0.7 percent to close at 6.8848 to the U.S. dollar, was unexpected, analysts said.
But it did follow comments by China's central bank governor, Zhou Xiaochuan, that he would not rule out a devaluation of the yuan to help promote export growth.
"It seems the central bank is taking steps to depreciate the yuan to help boost export industries, due to the grim economic outlook. It could be seen as part of the country's stimulus policy," said Feng Yuming, an analyst at Oriental Securities, in Shanghai.

Still, Beijing's scope for depreciating the yuan is limited given the country's massive trade surplus and its huge and surging foreign exchange reserves.
Indicating a degree of controversy over the issue, some Chinese analysts argue that resorting to devaluation could cause capital to flee to other countries whose currencies are expected to gain in value. It could also trigger competitive devaluations by rival exporting nations.

[Why ForexGen]


1. Lowest spreads in the market with 0-1 pip spread in 10 pairs, no commissions, no swaps and instant account Activation.
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4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. [ForexGen] offers a free trial Forex [demo account] that allows you to test your skills and practice without risking real money.

British Pound Remains Under Pressure Ahead

British Pound Remains Under Pressure Ahead of BOE Rate Cut as UK Construction PMI Falls to Record Low

The British pound initially eased back on the release of UK construction activity figures, but subsequently bounced back amidst broad US dollar weakness.

Focusing on the data on hand, construction PMI plummeted to 31.8 in November from 35.1, signaling the worst contraction in business activity since record-keeping began in 1997. Weakening employment conditions combined with tight credit markets have sapped demand for housing, adding to downside risks for the economy at large. Upcoming UK services PMI results are likely to reiterate this, as the index is forecasted to fall to a record low of 41.2 in November from 42.4. Disappointing readings should also add to speculation that the Bank of England will slash interest rates on Thursday, as Bloomberg News predicts a 100bp reduction to 2.00 percent. Support for GBP/USD looms below at 1.4805, and as long as price holds above that point, there is potential for a retracement higher. However, the trend and interest rate expectations remain overwhelmingly in favor of long-term GBP/USD declines.

[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.

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*Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

Euro Edges Higher

Euro Edges Higher, Euro-zone Retail Sales Likely to Disappoint

The euro continues to form a series of higher lows, suggesting EUR/USD could be forming some sort of intermediate bottom.

Nevertheless, intraday rising trendline support near 1.25 is a more significant level that will be worth watching, as a break below may be followed by a test of the October lows of 1.2328. Looking ahead, Euro-zone retail sales are expected to have fallen 0.4 percent during October, leaving the annual rate at a disappointing -1.5 percent. However, given the 1.6 percent plunge in spending in Europe's largest economy, Germany, there is potential downside risk for Wednesday's report. The Euro-zone has already fallen into recession, as indicated by the 0.2 percent contraction in GDP during Q2 and Q3, and continued declines in consumption would only suggest that GDP will fall negative in Q4 as well. As a result, a weaker-than-expected retail sales reading should weigh on the euro, especially since the results will add to speculation that the European Central Bank will cut rates aggressively on Thursday.

Check out Daily Fundamentals in its entirety for analysis and outlooks on the US dollar, euro, British pound, Japanese yen, and the commodity dollars.

[ForexGen White Labels]


Forex White Label partnership allows the trader a quick access to the online foreign currency exchange market.

ForexGen provides two types of trading White Label partnerships, a limited and a full solution. ForexGen different types of forex White Label partners are able to access ForexGen's trading platform entirely branded under each partner's unique company image and name. We provide a customizable online trading platform for the different types of the two White Label solutions.

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We provide 'full White Label partnership' to match the needs of the regulated companies and organizations that have a legal authorization to hold clients' funds. Our online trading platform is the most qualified online trading software in addition to an experience based infrastructure, but the full White Label partner is responsible for all administrative work and of all contact with their clients, i.e. opening of accounts.

[Limited White Label]
Limited White Label partners are also offered to access our customized online trading platform but their customers have to open a direct forex trading account with [ForexGen] Investments. Consequently, limited White Label partners could be not regulated by a financial authority as they will not hold customers' funds. This service permits the customer to manage his trading actions freely without vast administrative paperwork.

US Dollar Holds To Wide Ranges

US Dollar Holds To Wide Ranges, ISM Services Forecasted to Hit Record Low on Wednesday

The US dollar remains within the range it has held to since the start of November, and for what it’s worth, day-to-day moves signal little more than consolidation.

While it is possible that we will see a sharp correction lower in the near-term, the long-term trend remains very much in favor of US dollar strength. Though Federal Reserve Chairman Ben Bernanke has indicated that the FOMC is likely to cut rates further, the fed funds rate is already at a historic low of 1.00 percent which leaves little in the way of maneuverability when it comes to monetary policy going forward. As a result, the option of quantitative easing - where the Fed buys long-term Treasuries to push rates down - has been presented as a more feasible option, and this will certainly be a development worth watching in coming weeks and months.

Looking ahead to Wednesday, conditions in US non-manufacturing sector - which accounts for approximately 70 percent of total economic activity in the country and includes retail, services, and finance - are anticipated to have worsened in November as the Institute for Supply Management index is estimated to fall to new record low of 42.0 from 44.4. Indeed, consumer confidence remains exceptionally weak, and the National Bureau of Economic Research (NBER) has already announced that the US economy has been in recession since December 2007. A disappointing result could weigh on the US dollar, but traders should also keep an eye on the employment component as a gauge for Friday's US non-farm payroll (NFP) report.

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Trend Lines

The trend lines are a popular and an important type in technical analysis for trend identification and confirmation, They are also one of the most underutilized as well.

There are two kinds of trends:Stock up trend: it can be used like a sell signal, deemed to be complete with the formation of a lower high or a lower low.Stock downtrend: it can be used like a buy signal , deemed to be complete with the formation of a higher low or higher high.

Channels

There are 2 types of channels in the forex market :1-If you want to create a down channel, it may also be called a descending channel, you can simply draw a line at the same angle as the downtrend and after that move the line to a new place where it can reach the most recent both valley.

For the both channels ,it should be done at the same time to you to create the trend line.It may be a sell signal when the prices hit the up trend line and it can be a buy signal when the prices hits the down trend line

Fibonacci

We should know from the beginning that the Fibonacci is a big subject and there are many ways to study the Fibonacci .there is a lot of types of the Fibonacci but we will show 2 types only: the Fibonacci retracement and extension.

The Fibonacci ratio can start from this number: 1, 1, 2, 3, 5, 8, 13, 21, 34
The number series starts from the number 1 then the number 2 and after that we add 1+2 we will get 3 ,it will be the third number ,then we add 2+3 we will get 5 and that will be the fourth number.
Fibonacci extension: the levels of Fibonacci extension will be 0, 0.382, 0.618, 1.000, 1.382, 1.618.many Traders can use the Fibonacci extension as profit taking level and when they watch the same levels ,they can buy or sell to enter the trade or cancel it, so this will become a due self-fulfilling expectation.

Fibonacci Retracement

fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by Leonardo Fibonacci. However, Fibonacci ’s sequence of numbers is not as important as the mathematical relationships, expressed as ratios, between the numbers in the series. In technical analysis, Fibonacci retracement is created by taking two extreme points (usually a major peak and trough) on a stock chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%. Once these levels are identified, horizontal lines are drawn and used to identify possible support and resistance levels. Before we can understand why these ratios were chosen, we need to have a better understanding of the Fibonacci number series.

Fibonacci Extension

Fibonacci Extension
what is fibonacci and how to use it in the world of FX?

Leonardo Fibonacci was a 13th century mathematician who noted that there are certain ratios that tend to occur repeatdly in nature . The common ones that he identified were 38.2%, 50%, and 61.8%.
For example, the distance from your fingertips to your wrist is 38.2% of the distance from your fingertips to your elbow. There is overwhelming evidence of Fibonacci ratios operating throughout nature.
These are not always perfect, but surprisengly they work more than just often!! Many people have argued about why these work, but my opinion is that all the large institutions use them, so you might as well buy or sell at the same levels that they do and if these levels don’t hold you can get out with a small loss.

Simple Moving Average (SMA)

the simple moving average is formed by calculating the average price of a security over a particular number of periods. While it is possible to create moving averages from the Open, the High and the Low data points, most moving averages are created using the closing price.

For example: a 4-day simple moving average is calculated by adding the closing prices for the last 4 days and dividing the total by 4.
11+ 12 + 13 + 14 = 50
(50 / 4) = 12.5
The calculation is repeated for each price bar on the chart. The averages are then joined to form a smooth curving line - the moving average line. Continuing our example, if the next closing price in the average is 15, then this new period would be added and the oldest day.
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Exponential Moving Average (EMA)

In order to reduce the lag in simple moving averages, technicians often use exponential moving averages (also called exponentially weighted moving averages). exponential moving average reduce the lag by applying more weight to recent prices relative to older prices. The weighting applied to the most recent price depends on the specified period of the moving average. The shorter the exponential moving average’s period, the more weight that will be applied to the most recent price.

For example: a 10-period exponential moving average weighs the most recent price 18.18% while a 20-period EMA weighs the most recent price 9.52%. As we will see, the calculating and exponential moving average is much harder than calculating an simple moving average. The important thing to remember is that the exponential moving average puts more weight on recent prices.
exponential Moving Average Calculation
Exponential Moving Averages can be specified in two ways - as a percent-based exponential

SMA vs. EMA

EMA:IT HELPS TO SHOW RECENT PRICE SWINGS AND FAST MOVINGSMA:HELP TO SHOW EASY CHART, AND ELIMINATE THE FAKEOUTS. IT’S UP TO YOU TO DECIDE WHICH ONE IS BETTER TO USE A LOT OF TRADERS PLOT DIFFERENT MOVING AVERAGES TO GIVE THE SIDES OF THE STORY. THEY SHOULD USE THE SIMPLE MOVING AVERAGE TO FIND WHAT IS THE OVERALL TREND, AND ALSO USE THE EXPONENTIAL MOVING AVERAGE TO FIND THE BETTER TIME TO ENTER THE TRADE TIME.Read More : www.forexgen.com