Fundamental analysis

Fundamental analysis is a very effective way to forecast economic conditions, but not necessarily exact market prices. For example, when analyzing an economist's forecast of the upcoming GDP or employment report, you begin to get a fairly clear picture of the general health of the economy and the forces at work behind it. However, you'll need to come up with a precise method as to how best to translate this information into entry and exit points for a particular trading strategy.

A trader who studies the markets using fundamental analysis will generally create models to formulate a trading strategy. These models typically utilize a host of empirical data and attempt to forecast market behavior and estimate future values or prices by using past values of core economic indicators. This information is then used to derive specific trades that best exploit this information.

Forecasting models are as numerous and varied as the traders and market buffs that create them. Two people can look at the exact same data and come up with two completely different conclusions about how the market will be influenced by it. Therefore is it important that before casting yourself into a particular mold regarding any aspect of market analysis, you study the fundamentals and see how they best fit your trading style and expectations.

The Fundamentals

Don't succumb to 'paralysis by analysis.' Given the multitude of factors that fall under the heading of "The Fundamentals," there is a distinct danger of information overload. Sometimes traders fall into this trap and are unable to pull the trigger on a trade. This is one of the reasons why many traders turn to technical analysis. To some, technical analysis is seen as a way to transform all of the fundamental

factors that influence the markets into one simple tool, prices. However, trading a particular market without knowing a great deal about the exact nature of its underlying elements is like fishing without bait. You might get lucky and snare a few on occasion but it's not the best approach over the long haul.

For forex traders, the fundamentals are everything that makes a country tick. From interest rates and central bank policy to natural disasters, the fundamentals are a dynamic mix of distinct plans, erratic behaviors and unforeseen events. Therefore, it is best to get a handle on the most influential contributors to this diverse mix than it is to formulate a comprehensive list of all "The Fundamentals."

Dollar Trades Mostly Lower, But Rises vs Pound

Dollar mostly lower, but rises versus pound in thin end-of-year trading

The dollar was mostly lower Monday, but gained versus the pound in light holiday-week trading.
The 15-nation euro inched up to $1.4091 in late New York trading from $1.4067 late Friday. The British pound, meanwhile, dipped to $1.4555 from $1.4677 late Friday as it circled parity with the euro. The pound hit its most recent record low of 1.0198 euros Monday.
The pound traded as high as 1.3620 euros -- and $1.9982 -- at the beginning of the year. It has dropped in value against the dollar and the common currency as Britain faced a contracting economy and the Bank of England chopped interest rates from a peak of 5.75 percent to a more than 50-year low of 2 percent.

Interest rates in the euro zone remain at 2.5 percent. The European Central Bank cut rates by 0.75 percentage points earlier this month.
Cutting interest rates can undermine a currency as investors transfer funds to earn higher returns.
The Federal Reserve has cut its key federal funds rate from 4.75 percent in Sept. 2007 to its current range of 0.25 percent to zero, the lowest level on record.

The buck slipped to 90.33 Japanese yen from 90.58 yen.
The dollar moved amid thin holiday liquidity on a day with no scheduled data to guide trading. Later this week, reports on U.S. home prices and manufacturing are expected to shed more light on the U.S. recession.
In other New York trading Monday, the dollar dipped to 1.0518 Swiss francs from 1.0675, and edged lower to 1.2104 Canadian dollars from 1.2221.

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Client Services

• Customer Support
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ForexGen Partnership

ForexGen offers three types of business partnerships.

* [Introducing Broker]
* [White Label]
* [Money Manager]

ForexGen Introducing Brokers ,White Label and Money Manager holders are recognized as a strategic business partners. The main focus of our service is to satisfy our partner's needs in order to deal with a qualified service and gain a large income sharing plan.

[ForexGen] provides appropriate services satisfying the needs of all business partner's specified situation and requirements.

Market News with ForexGen

Market News with ForexGen

China's Feb. trade surplus shrinks 63 per cent; gap with U.S.A., Europe narrows
BEIJING - China's politically sensitive trade surplus plunged in February as U.S. and European demand for Chinese goods weakened and

Canadian Business, 10/03/2008 07:44

American Axle, UAW to resume negotiations Monday
DETROIT - Negotiations between the United Auto Workers and auto parts maker American Axle and Manufacturing Holdings Inc. have

Canadian Business, 10/03/2008 07:41

Big fall in China's trade surplus
China's trade surplus unexpectedly falls sharply in February, and there are warning signs on inflation.

BBC Business, 10/03/2008 07:13

BA pilot strike talks break down
Talks to avert a strike by pilots over BA plans to launch a new transatlantic subsidiary collapse.

BBC Business, 10/03/2008 07:11

5 money books to change your life
It's not often that a book on personal finance has something new to contribute. Here are a few that do.

MSN Money, 10/03/2008 07:01

A stock as solid as concrete
Shares of Cemex are down, but this century-old company is far from out. It gets a perfect five-star rating in.

MSN Money, 10/03/2008 07:01

Alkermes Shares Fall on Insulin Program (AP)
Shares of Alkermes Inc. fell Friday after the biotechnology company said it expects partner Eli Lilly and Co. to end.

Yahoo US markets, 10/03/2008 06:58

Where to stash college savings
The tax incentives of an in-state 529 plan are obvious, but the benefits may not be as great as they.

MSN Money, 10/03/2008 07:01

Next shoe to drop: Prime mortgages
The credit crunch is cutting a broad swath across the economy, and it's hard to know how far it will.

MSN Money, 10/03/2008 07:01

Ambac Shares Rise After Stock Sale (AP)
Ambac Financial Group Inc.'s stock rose Friday after the bond insurer unveiled plans to sell a big piece of itself.

Yahoo US markets, 10/03/2008 06:58

Alnylam Shares Fall on Program Concerns (AP)
Shares of Alnylam Pharmaceuticals Inc. tumbled Friday over concerns that the biotechnology company may be moving too slowly in developing.

Yahoo US markets, 10/03/2008 06:58

US auto sector ratings not yet hit by American Axle strike - S&P - CNNMoney.com
WZZM.

Google Business News, 10/03/2008 06:52

Boeing Shares Drop on 787 Delay Report (AP)
Shares of Boeing Co. fell Friday after an analyst indicated possible delays with the aircraft maker's much-anticipated 787 deliveries.

Yahoo US markets, 10/03/2008 06:58

Big Lots Shares Rise on 'Buy' Rating (AP)
Shares of Big Lots Inc. rose on Friday as an analyst said the closeout retailer is poised for growth and.

Yahoo US markets, 10/03/2008 06:58

Chevron, Mitsui Oil to launch 3.1 bln usd gas project in Thailand - CNNMoney.com
Boston Globe.

Google Business News, 10/03/2008 06:48

Business Events for the Coming Week (AP)
Major business events and economic events scheduled for the coming week : MONDAY, March 10 WASHINGTON -- Treasury bill auction.

Yahoo US markets, 10/03/2008 06:58

Credicorp Shares Dip on Citi Downgrade (AP)
Shares of Credicorp Ltd. slipped Friday after a Citi Investment Research analyst downgraded the company, saying the stock price is.

Yahoo US markets, 10/03/2008 06:58

India Fin Min: Government, RBI To Monitor Capital Inflows
India Fin Min: Government, RBI To Monitor Capital Inflows.

Dow Jones Newswires, 10/03/2008 06:48

Investors Eye Retail, Inflation Data (AP)
This week on Wall Street, investors will find out if consumers' worries about housing, jobs and rising prices are affecting.

Different Types of Forex Orders with ForexGen



A trader has at his disposal different types of orders to make FOREX trades. A clear understanding of each type of order is necessary to be a successful FOREX trader.

Market Order – is an order to buy or sell at the current market price. They can be used to enter or exit a trade.

Market orders should be used with care because in fast-moving markets there may be a difference between the price seen at the time a market order is given and the actual price of the transaction. This is due to slippage – the amount the market moves in the few seconds between giving an order and having it executed. Slippage could result in a loss or gain of several pips.

Limit Order – is an order to buy or sell at a certain limit. They can be used to buy currency below the market price or sell currency above the market price. When buying, your order is executed when the market falls to your limit order price. When selling, your order is executed when the market rises to your limit order price. There is no slippage with limit orders.

Stop Order – is an order to buy above the market or to sell below the market. They are most commonly used as stop-loss orders to limit losses if the market moves contrary to what the trader expected. A stop-loss order will sell the currency if the market falls below the point set by the trader.

One Cancels the Other (OCO) – this order is used when placing a limit order and a stop-loss order at the same time. If either order is executed the other is cancelled, allowing the trader to make a transaction without monitoring the market. If the market falls, the stop-loss order will be executed, but if the market rises to the level of the limit order, the currency will be sold at a profit.


http://www.forexgen.com/

* Example OCO Transaction:

Buy: 1 standard lot EUR/USD @ 1.3228 = $132,280
Pip Value: 1 pip = $10
Stop-Loss: 1.3203
Limit: 1.3328

This is an order to buy US dollars at 1.3328 and to sell them if they fall to 1.3203 (resulting in a loss of 25 pips or $250) or to sell them if they rise to 1.3328 (resulting in a profit of 100 pips or $1,000).

* Here's another example:

The current bid/ask price for US dollars and Canadian dollars is

USD/CDN 1.2152/57

...meaning you can buy $1 US for 1.2152 CDN or sell 1.2157 CDN for $1 US.

If you think that the US dollar (USD) is undervalued against the Canadian dollar (CDN) you would buy USD (simultaneously selling CDN) and wait for the US dollar to rise.

This is the transaction: Buy USD: 1 standard lot USD/CDN @ 1.2157 = $121,570 CDN
Pip Value: 1 pip = $10
Stop-Loss: 1.2147
Margin: $1,000 (1%)

You are buying US$100,000 and selling CDN$121,570. Your stop loss order will be executed if the dollar falls below 1.2147, in which case you will lose $100.

However, USD/CDN rises to 1.2192/87. You can now sell $1 US for 1.2192 CDN or sell 1.2187 CDN for $1 US.

Because you entered the transaction by buying US dollars (buying long), you must now sell US dollars and buy back CDN dollars to realize your profit.

You sell US$100,000 at the current USD/CDN rate of 1.2192, and receive 121,920 CDN for which you originally paid CDN$121,570. Your profit is $350 Canadian dollars or US$287.19 (350 divided by the current exchange rate of 1.2187).

For more detailed information can be found in

http://www.forexgen.com/

Lowest Spread with ForexGen

Lowest Spread with ForexGen

If we take no commissions or fees, then how are we compensated for our brokerage services, might you ask? The answer is: the spread. As you may have noticed, a currency pair quote comes with two displayed rates for instance, GBP/USD 2.025/2.028. Those refer respectively to the bid price (the rate at which you may short sell the pair) and the ask price (the rate at which you may buy the pair). The spread is the difference between those two rates. The tighter the spread, the more advantageous it is for you. ForexGen offers spreads as low as 1 pip on the main currency pairs. ForexGen is able to offer such tight spreads thanks to the huge capital traded by its clients each day and the excellent inter-bank conditions thus negotiated.

24hrOnline Forex Trading With ForexGen

With a volume of $3 trillion traded each day, the foreign exchange market is the largest financial market in the world. While Forex trading was once the exclusive domain of banks and large financial institutions, the rise of Internet technology has made it accessible to all types of investors including individuals with small investment capital. As word of its substantial and quick potential profits is spreading, online Forex trading is becoming more popular each day.

Through online currency brokers such as ForexGen, traders can now buy and sell currencies in one mouse click and with no commissions or fees. Online Forex trading allows you to take advantage of market fluctuations – even small – in various currency rates. At ForexGen, you get free access to topnotch tools which will help you predict market direction and place your orders.

For more detailed information can be found in

http://www.forexgen.com/

Introducing Broker with ForexGen

Introducing Broker with ForexGen

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

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.

* Instant order execution.
* No dealing desk.
* Low spreads.
* Free qualified forex charting .
* Real time streaming news.


ForexGen main focus is on our client's profitability and satisfaction which increase their online forex trading life time. At ForexGen the trader has the ability to spend most of the time controlling and performing their business rather than troubleshooting.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Leverage of 200:1 leverage for accounts.
* Without maintenance margin, our services offer margin call and automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US.
* The minimum account size with a 250 US has the ability to execute a lot of trading lots.

Qualified and familiar multilingual platform!

* Streamline dealing with no request for quote for up to 20 million.
* The ForexGen online Trading platform offers traders to do currency trading in pairs. We also allow trading Gold and Silver with the 'one click trading' mechanism. trading.

For more detailed information can be found in

http://www.forexgen.com/

Foreign Currency with ForexGen

Foreign Currency with ForexGen

Foreign currency – the smart way to buy

The smartest way to buy foreign currency is to let an expert do it for you.

For those people who don't normally deal in foreign currency, the whole market can be daunting. Apart from the fact that all currencies change their value every day against other currencies, how do you know when it's a good time to buy? More importantly, how can you protect yourself against a sudden change in exchange rates that works against you? Foreign currency becomes a lot less foreign when you let an expert take charge.

Why you may need help

If you're making foreign currency payments on a regular basis – to pay a mortgage on a property overseas, for example, or paying employees in a part of your company that's located outside the UK – you want to do it as economically as possible. You certainly don't want to suffer from significant fluctuations in foreign currency where, for example, your mortgage payment costs you £500 one month and £550 the next. Apart from anything else, it's very difficult to budget and plan ahead when you can't guarantee how much will be leaving your bank account – or indeed coming into it, if the currency is coming into the UK. What a difference it could make if you could buy your currency in advance, so you don't suffer from exchange rate differences, or to put a limit on the rate so that you know you're never going to pay more than a certain amount.

Taking control of your foreign currency

In the same way that you wouldn't handle the legal paperwork for the sale of your home, or give yourself inoculations before you travel, don't handle complicated foreign currency transactions by yourself. Instead, trust an expert to be looking at the foreign currency markets on your behalf, giving you the advice you need to buy and sell your currency at the right time so that your money really is working for you and not against you.
ForexGen is a commercial currency brokerage based in Norway. We help thousands of clients move hundreds of million pounds across the globe every day. From large businesses to private individuals who wish to send regular payments abroad, you can save money by getting a better currency exchange rate than your bank. ForexGen buys currency at wholesale rates and can help you save money with our fast secure service.

For more detailed information can be found in

http://www.forexgen.com/