ForexGen Trade Execution

The foreign exchange

market is unique in that

central banks intervene

from time to time to affect

the price movements

of their respective

currencies (one example

would be the recent intervention by

the Bank of Japan to push down the value

of the yen). On the surface, this may disturb

those who use fundamentals to make

investment decisions, trusting that the “invisible

hand” guiding free-market behavior

is not being manipulated. However, it

has been proven time and again that central

banks can only influence currency

values for short periods; over time, the

markets adjust to the changes. This leads

to the formation of trends, which your

trend-following strategies will help you

trade.

Since most currency trading is shortterm

in nature, speculators can cause erratic

fluctuations in the exchange rates. You can

see this in the 15-minute chart of the June

2002 Canadian dollar contract displayed in

Figure 4. On June 3, 2002, due to the

dismissal of the Canadian finance minister

Paul Martin, short-term traders brought the

value of the Canadian dollar down away

from its long-run equilibrium point. But the

value cannot move away from this point

forever, and this can be seen by the quick

revival of the exchange rate.

ForexGen now has a trading new client called MultiTerminal. The MultiTerminal is intended for simultaneous management of multiple accounts, for which is mostly helpful for those whom manage investors' accounts and for traders working with many accounts simultaneously.