Forex Trading Terms

ForexGen has some of the most competitive Forex trading terms on the market today! Learn more about each of our trading terms below.
Minimum Initial Deposit – Open a live account with CMS with a low minimum initial deposit of $200.
Universal Accounts – Unlike many Forex brokers, CMS Forex allows you to trade both mini (10,000) and standard (100,000) lots under a single account.
Multi-Currency Accounts – Open an account in one of eight base currencies, allowing you to avoid exposure to exchange risk when depositing and withdrawing funds.
No Commission† – CMS charges no commission on your trades; we are compensated by the Bid/Ask spread.
Spread – CMS offers competitive fixed spreads on 19 currency pairs, even under volatile market conditions. Order Processing – We pride ourselves on fast, fair, and reliable order execution. We fill your orders at the best available market prices in seconds. Order Types – CMS Forex offers an array of effective order types that help you enter the market efficiently, manage your positions, and minimize losses.
Rollover Interest Policy – CMS Forex pays and charges clients rollover interest at competitive rollover rates for all open mini and standard positions.
Interest on Unused Margin‡ – CMS Forex offers our clients the benefit of earning interest on unused margin for accounts greater than $10,000 USD.
Leverage & Margin – CMS gives clients the opportunity to trade at a maximum leverage option of 400:1. Leverage may increase potential gains or losses on a given position.
Margin Calls – We have a policy in place to protect you from losing more money than you have in your account by automatically closing out positions that activate a margin call.
Hedging – Hedging a trade allows you to maintain both a long and a short position on the same currency pair at a given time, at no additional margin.

Quality Dealing Services

As a Forex trader, you don’t want your hard work to be undermined by substandard dealing desk staff. The ForexGen team of experienced dealers is dedicated to ensuring that your trades are executed in the most timely and accurate manner possible. Unlike some other Forex brokers, we will never execute a market order at a price other than one which you approve. In addition, our dealers will often execute your order at your original price even if the market has moved against you — another practice that sets ForexGen apart from the average broker.
The ForexGen dealing desk strives to provide its clients with some of the fairest and highest quality order execution in the market. Our dealing desk offers both online as well as phone based execution when necessary. Our dealing support team is available 24 hours a day to handle dealing related issues and disputes.
Market Orders Market orders are created when a trader wants to open a position at the current market price. After the trader clicks on a price, he or she must confirm the price prior to execution. The price sent to the dealing desk will be the price shown in the confirmation window the moment the trader accepted the trade ForexGen will execute the trade in real-time if the available price is at or within a few pips of the requested price. Once the order is executed the opened position instantaneousely appears on the client’s trading platform.
If the market has moved and no price within a few pips of the requested price is available, the dealing desk will send the client a requote at the most current market price. The client can then either accept or reject the requote. Orders will never be executed at the new price without the client’s prior consent. This means that there is never slippage on market orders. Slippage is defined as the difference between the price approved by the client and the price at which the order is actually executed.
In an attempt to decrease the occurrence of requotes during fast moving markets and to help guarantee effective market entry during major jumps in market price, ForexGen has introduced a Trader’s Range feature in its VT Trader software. The Trader’s Range option allows clients to automatically approve requotes within a chosen range. For example, if Trader’s Range is set to 10, requotes within ten pips of the requested price will be processed without requiring the client’s confirmation. Please note that because orders placed by trading systems are classified as market orders, they are subject to requoting as per market order processing procedures.
Conditional Orders (stops, limits, entry stops and entry limits) Conditional orders are triggered when the market price reaches the price specified in the order. When this happens, the client’s initial order is activated, requesting that the order be filled at the specified price. Under normal market conditions, ForexGen will honor the specified price on conditional orders of up to 100 mini or 10 standard lots. Larger orders as well as orders executed in extremely volatile markets will be executed at the next available quote if the market has passed over the requested price. This is known to occur over the weekend, when Sunday’s opening price is sometimes significantly different from Friday’s closing and during major market moves.
Many Forex dealers widen their spreads prior to a major market move, thus making market entry more difficult. As ForexGen offers fixed spreads, ensuring that you can always expect quality prices, we may limit the placement of new conditional orders to at least 35 pips away from the current market price for approximately 15 minutes before major news announcements. Under normal market conditions you may place conditional orders as close as 5 pips from the market price.

Trade for a Living with ForexGen

So you Want To Trade for a Living
I always enjoy Brett's books on trading psychology. While impressed by his ongoing sharing about this important subject, I emailed him recently to request an article for aspiring traders who want to trade for a living. This is not an easy feat, but it is not mission impossible. Trading the financial markets is basically trading your belief on the financial markets. It takes a disciplined mindset, proper money management and a good trading system to trade profitably. Most workshops teach you the technical skills, but rarely touch deeply on the subject of trading psychology. Read more…
Therefore, I recommend you to read "Enhancing Trader Performance" by Brett N. Steenbarger to develope cutting edge of trading psychology. Below is an article he approved to publish at FX Operator:
I receive quite a few emails from aspiring full-time traders. Some hope to land positions with trading firms; others are looking to make a living by trading independently. Here are a few considerations for those thinking of making the leap:
Make sure you're adequately capitalized - This is, in my experience, the achilles heel of most traders who aspire to make a career of their market participation. If you start with a capital base under $100,000, you have to make a huge annual return on your money year after year to sustain a decent living. That leads traders with small accounts to take outsized risks, and those risks are what eventually blow them up. As a relatively new trader, you'd do *very* well to make 20% on your money per year after costs. If you can't make an adequate living from 20% returns, you know you're undercapitalized.
If you're not adequately capitalized, focus on building a track record - It doesn't matter if you're trading small. If you can show consistent returns from your trading and sound money management, you'll have something to take to a proprietary trading firm to land a position. They will front you capital, and you can get your start in the business. If you don't have the track record, however, you'll find many doors closed. Motivation and a passion for trading don't substitute for experience and demonstrated skill.
Make sure you have a durable edge - Before you quit your day job and pursue trading, make sure you've traded in a variety of market conditions over a variety of market cycles. Look at it this way: if a person with a track record of a few months asked you to give him money to trade for your account, would you pony up? Probably not. For the same reasons, you should establish a sound track record with solid profitability and good risk management before you make the full-time leap. Make as many of your mistakes as possible *before* you go full time.
Make sure you have reserves - Just as many new businesses tread water their first year, many traders struggle to cover costs when they go "live". After all, to cover commission, equipment, and software costs alone requires a fair return on capital. You should have more than a year's worth of living expenses available as liquid capital before you go full time. A second income (your own or from a spouse) also helps tremendously. This will take pressure off your early performance and help you focus on making good trades, rather than making the rent money.
The bottom line is that starting a trading career truly is starting an entrepreneurial business. The same dynamics that lead to success in startup firms--from knowing your markets to having a solid plan to being well capitalized to executing on details--apply to aspiring traders. If you can approach trading with the mindset, work ethic, and creativity of a successful entrepreneur, you have a real shot. And that's what entrepreneurs live for.

ForexGen Defines Forex

Whether or not you are aware of it, you already play a role in currency trading. The simple fact that you have money in your pocket makes you an investor in a nation's currency. By holding US Dollars, for example, you have elected not to hold the currencies of other nations. When a currency is traded, the transaction is carried out on the Foreign Exchange market (also referred to as the Forex or FX market). The Forex market is the largest financial market in the world, with over $1.9 trillion changing hands every day!
Unlike other financial markets that operate at a centralized location (i.e., the stock exchange), the worldwide Forex market does not have a central location. It is a global electronic network of banks, financial institutions and individual Forex traders, all involved in the buying and selling of national currencies. A major feature of the Forex market is that it operates 24 hours a day, corresponding to the opening and closing of financial centers in countries all across the world. At any time, in any location, there are buyers and sellers, making the Forex market the most liquid market in the world. Read more…
Traditionally, access to the Forex market has been made available only to banks and other large financial institutions. However, with advances in technology over the years along with the industry's high leverage options, the Forex market is now available to money managers and individual Forex traders.†
With some initial capital (as low as $200 with CMS Forex), and a computer with an internet connection you can become a participant in this global and liquid financial market.

ForexGen Explains What Drove the US Dollar to a Record Low

Those who may have hoped for a recovery in the US dollar have been sorely disappointed. The greenback hit a record low against the Euro and it will just be a matter of time before the EUR/USD hits 1.60. Before you know it, we’ll be talking about the possibility of one Euro being worth 2 US dollars. Although this may be far fetched, who would have thought that the Swiss franc would be worth more than a US dollar?
Although the once mighty greenback faces long term pressures such as a depressed labor market that is expected to deteriorate further and the strong possibility of another contraction in retail sales, the latest round of dollar weakness was actually triggered by the following:
1) News that Lehman Brothers liquidated 3 of its investment funds due to “market disruptions.”
2) Concerns that the usually stubborn ECB President will hold his ground on inflationary pressures, which he did. Eurozone interest rates remain at 6 year highs despite clear signs of slowing growth.
3) Strong Eurozone and UK Economic Data - French and Italian industrial production both beat expectations while the UK trade deficit narrowed.The dollar continued to remain under pressure as the trade deficit increased in the month of February. Even though everyone was looking for the weaker dollar to help boost trade, I forecasted an increase in the deficit because the previous drop in the ISM manufacturing index told us that it would be weak (Forecasting News)
Jobless claims also dropped sharply but the improvement is primarily due to the Easter Calendar effect. I still expect claims for unemployment to rise especially since continuing claims remain at very high levels.
Not only is the US dollar trading at a record low against the Euro, but it also slipped below 7 Chinese Yuan. With this big psychological barrier breached, the G7’s criticism towards China’s currency regime will be limited.
Nothing has changed and if anything, ECB President Trichet has confirmed his hawkishness. US retail sales are due for release next week and with Linens ‘n Things joining Domain, Fortunoff, and Sharper Image in filing for bankruptcy protection, consumer spending will contract for another month. Crude oil and gasoline prices have also hit a record high which is going to hurt consumer spending further.
Learn more about Forex Market News with ForexGen at
http://www.forexgen.com/

World Currency Watch with ForexGen

The ECB's and BOE's rate decisions puts more wind to the back of EUR/GBP!
The Eurozone and the U.K. economies continue to diverge.
For years and years, these two economies followed each other up and down in "lock step". Then the credit/sub-prime crisis hit. This pushed the U.K. economy lower as they experienced the same things that America experienced: Hedge fund blow ups, banks struggling, housing prices falling, etc.
On the other hand, many other European banks didn't have as much exposure to "sub-prime" as did the "financial epicenter", the U.K.
So as these economies "de-linked" and continue to diverge, it's produced a heck of an uptrend in the EUR/GBP pair. Click on the chart to enlarge it below.
Learn more about Forex Market News with ForexGen athttp://www.forexgen.com/

Automated Forex Trading - More Trades with ForexGen

This article is part of my ongoing evaluation of ForexGen’s Forex System Selector, a web based automated trading tool that allows the user to select one or more trading systems, and have them automatically traded against an account.
This is running against a one month demo account, which is funded with $100,000. Previous articles have given an overview of the product and the first trades. This article provides an update on trading performance to date.
In terms of the operational smoothness of the system, I can report that it continues to operate flawlessly. I am taking note of this because I have tried several other products that were unstable and continually lost server connectivity. The fact that this product is web based, and on ForexGen’s own server means that connectivity to ForexGen’s quotes and trade execution engine is well controlled. Read more…
The trading performance to date is fairly disappointing, but not entirely unexpected. In previous postings, I noted that the performance of the trading models will make or break this product. I believe that I have chosen some of the best and most conservative models, but to date (in the last weeks), one model (which has been responsible for all 4 trades) has lost 116 pips, which is around 2.3% of the trading capital.
One trade, which uses a different model is currently open, and is down around 22 pips at present on the CHF/JPY pair (long)
Forex Killer
Forex Killer is an extremely successful and popular forex trading system and until recently held the number one position on our review site. Here are just a few of the reasons we rate Forex Killer so highly:
- No trading experience is required- You create the forex signals yourself- It only takes a few minutes of your day- You can do it any time that suits you- Low risk/high return ratio- Earn up to thousands every single day
Forex Killer is immediately downloadable and is easy to use. If you do need help, however, there is a support hotline.
Here is what one satisfied customer has to say about Forex Killer:
“Being an experienced trader its hard to impress me, you did! I mostly trade EUR/USD and USD/CHF Pairs. The forex killer signals are not only easy to use but very profitable, thank you.”
Besides all this, Forex Killer comes with an unconditional 8-week 100% money back guarantee. For only $99 it is well worth the investment.

A Simple Introduction to Forex Trading with ForexGen

Short for Foreign (currency) Exchange, Forex is the world’s biggest market for trading in currencies. As much as 2 trillion US dollars worth of currency are traded on the Forex on a daily basis. Compare this with the approximately 25 million US dollars traded on the NYSE and you’ll get the picture - Forex is huge.
So what is Forex all about? Simply put, Forex entails buying one currency, let’s say Turkish Lira, and selling another, say US Dollars. In Forex, currencies are always traded and quoted in pairs. The exchange is made through a broker.
Just like the stock market where you are investing in a company, with Forex you are in a way investing in a country. If your company is a success, the value of your stock goes up. Much the same principle is at work in Forex. If the economy of the country whose currency you are trading is robust, the value of that currency will also go up - and you can then sell it for a profit. Read more…
Unlike stock markets, there is no “trading pit” in the world of Forex. Forex operates through the internet and other electronic communications and runs 24 hours a day, 5 days a week.
It has only been in the last several years that the Forex has been open to the average person to invest in. The Forex market itself has been around since 1971, but for most of its history only large companies and a few very wealthy individuals possessed the resources to be able to trade in foreign currency. Today however, anyone with a high speed internet connection and a small initial investment (as low as 50 US dollars) can get in on the Forex market.
The seven most commonly traded currencies on the Forex market are U.S. Dollars (USD), Euros (EUR), Japanese Yen (JPY), UK Pounds (GBP), Swiss Francs (CHF), Canadian Dollars (CAD) and Australian Dollars (AUD). Foreign currencies are identified by means of a three letter code. The first two letters stand for the country, while the last letter identifies the nation in question’s currency.
For example:-USD: U.S. = United States, D = Dollars.GBP: GB = United Kingdom (Great Britain), P = Pounds.
At any given time, business is going on somewhere in the world. Global business never sleeps, and neither does Forex. This can be beneficial to you - you can trade on the Forex market any time that is convenient to you.
There are seven currencies on the Forex which are called Major Currencies, due to their being the most heavily traded currencies on the market. The biggest four are, in order: U.S. Dollars (USD), Euros (EUR), Japanese Yen (JPY), and UK Pounds (GBP). The remaining three are Swiss Francs (CHF), Canadian Dollars (CAD) and Australian Dollars (AUD).
Advantages Of Forex Trading
There are a few advantages which the Forex trader enjoys which those who trade in the stock market do not.
1.Unlike with stock brokers, the investor does not pay commissions, per se, to the broker. Instead, the dealers in Forex trading receive part of the “spread” (that is to say, the difference) between the buying and selling price of currency. This is generally a very small amount per trade; a fraction of a percent.
2.You can trade on the Forex market any time which is convenient for you, unlike the stock market - it is closed only on weekends, from 5pm Eastern time on Fridays to 12AM on Mondays.
3.As opposed to the stock market, it is nearly impossible for companies or individual investors to manipulate the Forex market. The volume of Forex trading each and every day prevents any one actor from having undue influence. We all know of instances of the stock market being artificially influenced by unscrupulous persons and companies however.
4.Forex trading can be done with borrowed capital, meaning that you need not have hundreds of thousands in liquid assets to trade currency in large numbers. This concept is called Margin Trading. A small amount of your own capital (less than 5 percent) can be used to leverage a large chunk of borrowed assets, which may then be invested. Forex is traded in what is called lots, the normal size of a lot being 100,000 US dollars. Depending on the dealer with whom you deal you may be able to trade is smaller amounts, these are known as mini-lots or micro-lots.
Learn more about Forex Market News with ForexGen athttp://www.forexgen.com/