07 March, 2008
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07 March, 2008
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07 March, 2008
Client Services
We provide a full time assistance service to support our
customer in dealing easily with ForexGen trader software. Even if you face any
problem during downloading or setting up the software, we will help you
overcoming it.
We provide the trader with full scale demonstrations and troubleshooting for
technical problems
Calling the dealing room is restricted to placing orders, no support or help desk issues are permitted to be placed through the dealing room numbers. These numbers are extremely busy and only attended by dealers who will not handle any other kind of issues.
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07 March, 2008
Dealing Rooms
ForexGen dealing desk representatives are available during trading hours - 24/5 from Sunday 6:00pm EST to Friday at 2:00pm EST.
You are encouraged to contact the dealing room by phone in these situations:
Whenever the trader asks for trading support, our team checks if the trader has performed the trading factually in order to facilitate the trading process and make it faster. Please pay attention to the following instructions before calling the trader support in the trading call center.
1. Your account number (visible in your Summary Report under ACID). While the User ID number is unverified.
2. Determine whether the order is a Market Order or a Limit Order and the number of units and the desired currency pair. ForexGen provides the trader with a factual changing quote stream. The prices can be changed more than three times at every second. Consequently the Market Orders will be maintained according to the current price the order was placed.
3. Specify your trade as "I would like to buy 5 lots of USD/JPY during the Market with a stop loss of 102.45 and a take profit of 102.62. . .".
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07 March, 2008
The literary work relevant to the study of “leverage” defines it as having the competence in directing influence over a large amount of money using nothing or very small amount of your money and to borrow with the intention of returning the rest.
As an example, in the forex investments, you can control $1000 with a $100 deposit. Your leverage, which conveys a true impression in ratios, is now: 100. You’re now controlling $1000 with $100.
Let’s say the $1000 investment goes up in value to $1001 or $100. If you had to
make an approach with the entire $1000 capital on your own, your bring in would
be 1% ($100 gain / $1000 placed at the beginning of investment). It is also
called 1:1 leverage. As might be expected, I think 1:1 leverage is a
inappropriate designation because if you have to competence in directing
influence over with the entire amount you’re trying to have power over, where
is the leverage then in that?
It is fortunate that, you’re not leveraged 1:1; you’re leveraged 1:100. You
only had to produce $100 of your money, so your bring in is a marvelous 100%
($100 gain / $100 initial investment).
At the moment I want you to do a quick exercise. Calculate what your bring in
would be if you lost $100.
If you calculate it as I have done, which is also called the right way, you
would end up with a -1% return using 1:1 leverage and an OMG! -100% return
using 1:100 leverage.
You’ve in so far as seems reasonably true heard the good hackneyed theme like
“Leverage is a double-edged weapon.” or “Leverage is a two-way road.” Well….as
you can see, these themes weren’t lying.
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07 March, 2008
Most beginners place too low value on the potentially disorder damage leverage can cause the infliction on their accounts. It is curtail to Understand leverage enough to know when to use it and when NOT for you success.
A very powerful tool Leverage is but both old and new traders use it to ruin
their trading capital simply because they take its destructive force with
indifference or carelessness or ignore it altogether. But the more of them the
easier for us smart traders to make money. Sad but true.
High leverage is a great selling point for most of the forex brokers. Yes they are pitching that you can make a huge killing using huge leverage, but be sure you could easily be killed by huge leverage as well.
Brokers want you to trade with a short-term mental attitude. It’s the
only way they make money. Some few pips are important to them. The more you
trade the more they make from spreads. It’s not in their best interest to tell
you to let your trades run longer than the same day.
If you want to give yourself the chance to succeed, first of all learn how to
trade profitably without leverage. Trade it safe and protect your capital.
When you can make more pips more than you lose steady continuity, then, and
only then, you should let loose this weapon of destruction called leverage.
Destroy broker (or traders) taking the opposite side of your trade. Don’t
destroy yourself.
Forex investments should be treated as a business. Don’t think that its just
because brokers let you use high leverage with a low minimum deposit that you
can “make a quick <type the amount of money here>” or “get rich quickly”.
Get close to the currency markets with respect.
Be concern for facts in your expectations and be willing to educate yourself
very good. If you didn’t, you will die. Not really, but your account will.
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07 March, 2008
Leverage is the use of various financial instruments or borrowed funds, such as margin, to increase the potential return of an investment. Leverage is a double edge sword and can be considered dangerous weapon because traders add bigger position sizes without actually owning the funds to cover potential losses. But it also can be a very powerful tool if it has been utilized to increase the investments power as long as traders have efficient money and risk management plans associated with it.
For Example: in order to trade 100,000 units of EUR/USD. Traditionally, traders
need to have 100,000 US dollars physical owned money or we say 1:1 leverage.
But with 100:1 leverage, traders are only required to deposit 1/100 of the
nodded amount which is equivalent to 1,000 US dollars.
If you are a kind of trader considering and seeking to have relatively high leverage, you should be familiar with the following:
1. The rules and boundaries of this kind of trading activities and how you will
handle it.
2. Fully understand all what is leverage (in) Forex and how it works, both for
you and for counter parties.
The use of Leverage can be highly profitable but it can be your worst nightmare
and enemy if it has not been utilized in an efficient way. Let us go through a
practical example in order to illustrate how leverage can work for and against
traders.
Having a 200-1 leverage account means that every $1000 you are willing to
invest can control a $200,000 position. Standard lot actual value in the market
equals $100,000, so by investing $2000 in the market with your broker you are
getting 2 standard lots. let us say that you will have 500:1 leverage, this
will mean that you will have more investments power and this will be great for
you if the market went in your direction and your plans has been fulfilled
but it also means that even a small move
against your opened order can leave you without any funds and clear all your
investments.
So to conclude this matter; the high degree of leverage that is often
obtainable in trading activities can work against traders as well as their
favors. The use of leverage can lead to large losses as well as gains.
forexgen provides more info about the leverage, for more info..
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07 March, 2008
Besides increasing the strength of your losses, leverage also has another way of killing you. It’s a much slower kind of death, though, kind of like being continually occurring open to view to high levels of radiation. Most traders don’t see it coming till they are dead.
This killer I’m talking about is the combined transfer cost of using high
leverage
Not only has the leverage increased the strength of your
losses, it also increasing the strength of your transaction costs as a
percentage of your account.
If you are losing in trades , your balance will shrinks and as your balance
shrinks, your leverage increases. As your leverage increases, your transaction
costs will eats away faster at the little money you have left. It’s a silence
slow death we are talking about here.
The more your leverage, the more your transaction cost as a percentage of
your balance.
If you have a mini account, and open a trade with a 5 pip spread, which equals
$5 transaction cost, look at how the relative value of your transaction costs
increases with more leverage.
Cost as % MR Leverage Margin Required (MR)
|
Cost as % MR |
Leverage |
Margin Required (MR) |
|
.05% |
1:1 |
$10,000 |
|
.10% |
3:1 |
$3,300 |
|
.25% |
5:1 |
$2,000 |
|
.5% |
10:1 |
$1,000 |
|
1% |
20:1 |
$500 |
|
1.5% |
33:1 |
$330 |
|
2.5% |
50:1 |
$200 |
|
5% |
100:1 |
$100 |
|
10% |
200:1 |
$50 |
Now that you’ve learned how leverage can enlarge your profits and losses, and
also your transaction costs.
Leverage doesn’t equal margin. How many times you can lever your account is the
Leverage. How maximum you are allowed to lever is totally depending on your
margin requirement
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