Forex Trading Terms

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

ForexGen ShowsThe Importance of Keeping a Log

ForexGen ShowsThe Importance of Keeping a Log

How many times have you read a book or a post telling you to keep a trading log. But you don’t. Or it isn’t consistent or some other excuse.
The reason I believe that most traders don’t keep a log (remember most traders don’t make money either) is because it requires discipline. And it requires that you confront your trading - warts and all.
I’ve posted a copy of today’s trading log for the ER2 and YM. You’ll notice that there are 2 trades that shouldn’t have been taken at all! Also you’ll note I calculate my average winner, average loser, and my winning %. That tells me my expectancy. Also all my profits and losses are denominated in R values (that’s risk values) not ticks or dollars. This keeps me honest. If I risk 20 ticks to make a 2 tick trade then I don’t get “rewarded” for that. However if I make a 20 tick trade with a risk of only 2 ticks then I do.
By the way thanks to ForexGen for the inspiration for the grading system you see on this trading log. The idea is that for each of my trading components: 1) signal, 2) mechanics, 3) Position Sizing, 4) Trade Management, 5) and Exit mechanics I get a grade - just like school. Depending on how I handle each of those components. So at the end of the day I can quickly evaluate where my weak points were. Read more…

ForexGen Defines PIP

ForexGen Defines PIP

A point in Forex trading is referred to as a “pip”. It is the last decimal place of a price quote.
Currency pairs are usually traded in standard Lots, which are equivalent to 100,000 units of the top currency in a pair. For example, 1 Lot of GBP/USD is eqivalant to 100,000 pounds. Standard lots can be traded in “mini” versions (0.1) and are equivalent to 10,000 units of the top currency pair.

Since the currency that is on the top of the price quote changes, i.e. 1 Lot of GBP/USD (100,000 Pounds) is worth more than 1 Lot of USD/CAD (100,000 Dollars), the value of a pip changes. Also, the size of a position will affect how much each pip is worth.
You can use our Pip Calculator to easily figure out how much each pip is worth for any pair, or size position. To learn more about contract sizes and the use of leverage, see this part of our Forex Course

The Mathematical Think-Tank with ForexGen

The Mathematical Think-Tank with ForexGen
Cash exchange rates, an Over-The-Counter (OTC) instrument, has become an easy-profit tool for many private business ventures, calling themselves legitimate Forex brokers. However they promote it, the business model reeks.

Selling Fantasies
Every ad starts with some wild claims of something along the lines of “Make $5,000 a week sitting at home!”, “Easy money from Forex!”, or anything else with excessive amounts of exclamation marks, you get the drift. They entice people with fantasies where truth lies away in distance. Read more…

What is the truth with ForexGen?

What is the truth with ForexGen?

Unlike centralized exchanges (e.g. NYSE, AMEX, CBOE, and etc.), OTC item prices settle upon agreement of two private parties, unregulated. The Forex brokers understand this and exploit it for profit.
These bucket shops trade against the clients, i.e. they serve as market makers and more often than not take the other side of trades against clients. They understand statistically that most financial market traders perform with negative expectancies, hence making trading against a losing crowd profitable business. This aslo explains why they target and welcome financial industry newbies so much.

What about the ones smart enough to eventually trade profitably? These brokers operate to preserve capital, and they resort to whatever means available and prevent consistent winnings off any client. Software disconnects, lagging/fraudulent price quotes, unfilled orders, or simply account banning have become some, certainly not all, common bucket-shop practices.
The above explains why most Forex brokers have incentives for clients to lose, and hence not legitimate. It has given Foreign Exchange trading a bad name, though it can become lucrative still, just not through the typical bucket-shops.

Forex Hedge Funds with ForexGen

Forex Hedge Funds with ForexGen

Hedge funds gained their popularity in the U.S. but foreign markets are starting to catch on to the idea. Hedge funds are known for their secrecy and exemption from regulatory rules. This investment vehicle moving overseas only makes it more attractive. There are however a few concerns when thinking about FOREX hedge funds.

Even less regulatory oversight
Less legal protection against losses
For now mostly meant to attract U.S. investors
Still relatively new and untested
This is not meant to completely discourage FOREX hedge fund investing but to make you aware of the potential risks involved. Hedge funds typically require hundreds of thousands of dollars in initial investments and that would be no small loss in a new trend scam if that’s what your first FOREX hedge fund investment turned out to be. Read more…