Friday, May 2, 2008

. Transaction costs


Transaction costs
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.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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How Leverage Affects Transaction Costs


How Leverage Affects Transaction Costs

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.
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Leverage control

Leverage control

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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Leverage

Leverage

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.
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ForexGen principals:


ForexGen principals:
ForexGen customer satisfaction is our major objective. To reach our business goals, we strive to put our client's goals in focus. We highly value our clients and always aim to exceed their expectations and cross the limitations encountered by the sophistication of the Forex trading industry.The ForexGen's provided services are all restricted and regulated by the international banking and financial regulatory standards. All our provided activities are supported by creativeness and modernization. Ambitious & motivated employees are working simultaneously to protect the customer's confidentiality. ForexGen is continuously providing the market's most competitive conditions. ForexGen complies with the trade commissions in the USA, EU and Australia. Being registered by the commercial authorities in 18+ countries, we adhere to the United Nations Commission on International Trade Law (UNCITRAL).
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. Forexgen

. Forexgen

ForexGen provide 24/7 customer support that are waiting for any Inquiries to meet all customer needs.
ForexGen provide a full time assistance service to support thier customer in dealing easily with ForexGen trader software.Even if you face any problem during downloading or setting up the software, ForexGen will help you overcoming it that ForexGen provide the trader with full scale demonstrations and troubleshooting for technical problems.ForexGen strives to give incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders.
ForexGen is the easiest and fastest gateway for the traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full trading services.
ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast online and free deposits and withdrawal, and most of all, solid funds security.
Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.
Opening a ForexGen trading account is easy, fast and secure. Just complete and submit your application online in just a few minutes. Representatives are available 24 hours a day, 7 days a week.
Account SizeThe minimum amount required for opening a ForexGen Live trading account is $2,500 for standard Account and $250 for Mini Account but the recommended minimum investment size is $10,000 for standard Account and $1,000 for Mini Account. That is because of the high leverage and the extremely volatile nature of the Forex market.
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Deposit Funds with ForexGen


Deposit Funds with ForexGen

ForexGen offers the easiest, simplest and fastest way of Forex funds depositing, withdrawing and transferring provided by Customer Support personnel available 24/7 In order to serve its clients any time all over the world.
ForexGen cares for its clients' funds, so that ForexGen allow funding operations with a guarantee of ForexGen itself that your fund operations are executed with high level of security and privacy.
Funds are accepted by wire transfer and e-gold payments. For full details about funding procedures and options kindly click here.
· Please note that during the weekends and official holidays, wire transfers may be delayed.
Account receivable funding could electronically be funded by ForexGen in the same business day, thus the client's account will be funded in the same day of receipt. For our client's security, each wire transfer reference section must contain the client's name and account number. ForexGen minimum deposit required to start trading is $250 . Also we have no limit for depositing fund into your account. You have the absolute right to choose the amount you want to deposit.

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