ForexGen Trading Currencies

Free Webinar Highlights How Corporations Can Eliminate Foreign Exchange Surprises By Leveraging Oracle E-Business, SAP ERP, PeopleSoft Enterprise or JD Edwards EnterpriseOne
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--FiREapps, the leading provider of foreign exchange exposure management software, announced a new webinar event focused on how multinational corporations can reduce business costs related to foreign exchange surprises by leveraging data within existing SAP ERP, Oracle E-Business, Peoplesoft Enterprise or JD Edwards EnterpriseOne systems.

Entitled, “ERPs & Foreign Exchange: How to Calculate and Manage FX Exposure ASAP,” the webinar will explore more efficient and accurate automated processes that enable corporate treasurers to generate complete data sets and calculate foreign exchange exposures quickly and easily. FiREapps automates the process of aggregating business system data to derive actionable transaction currency information for foreign exchange exposure management in seconds, rather than days.

“Multinational corporations struggle to get complete foreign exchange exposure data out of their ERP systems, and often, the exposure calculations they derive from that data is suspect,” said Wolfgang Koester, CEO of FiREapps. “Through FiREapps, we have created a solution for treasury departments that leverage their ERP systems to provide quick and simple access to the transaction data they need to quantify and manage foreign currency volatility.”
Relying on manual processes, experienced treasurers find that they are unable to derive complete and accurate transaction currency data from their ERP systems in a timely manner. The common use of spreadsheets to calculate foreign exchange exposures based on this data introduces errors and uncertainties into the process. As a result, most treasury departments are unable to understand the sources of their exposure, or adequately protect their company from foreign currency volatility. FiREapps enables corporate treasurers to efficiently access transaction currency data from ERP systems in a way that allows them to focus more of their energies on the root causes of foreign exchange exposures – by entity and at the transaction level.

“Before using FiREapps the process to compile an exposure data set from Oracle was entirely manual,” said Brent Callinicos, vice president and treasurer for Google, Inc. “FiREapps was quick and easy to install and has given us centralized and constant access to all foreign currency exposure data throughout our business units. We can now devote our time to strategically managing exposures.”
The “ERP systems & Foreign Exchange: How to Calculate and Manage FX Exposure ASAP” webinar will be held on Wednesday, December 17, 2008 at 11:00 a.m. PST / 2:00 pm EST. Participants will learn about the challenges that companies face managing transaction currency data within their ERP system, and how to overcome them with an automated solution

 

1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. ForexGen offers a free trial Forex demo account that allows you to test your skills and practice without risking real money.

This trading is always done in pairs – Currency Pairs, one currency is bought and the other is sold. Together, they make up what is known as the "exchange rate".

For example, you may buy Euros with Dollars, anticipating that the Euro to increase in value relative to the Dollar. If the Euro rises relative to the Dollar, you sell the position and can earn a profit.

Most commonly traded currencies or the “majors” are:

US Dollar (USD)
Japanese Yen (JPY)
Euro (EUR)
British Pound (GBP)
Canadian Dollar (CAD)
Australian Dollar (AUD)
Swiss Franc (CHF)

Most commonly traded currency pairs are:

US Dollar and the Japanese Yen (USD/JPY)
Euro and US Dollar (EUR/USD)
US Dollar and Swiss franc (USD/CHF)
British Pound and US Dollar (GBP/USD)

While quoting currency pairs, the first currency is referred to as the base currency and the second as the counter or quote currency. The base currency is always equal to 1 monetary unit of exchange, for example, 1 Dollar, 1 Pound, 1 Euro.

Trading Forex Currency Pairs for Maximum Profit

It is also known as domestic currency or accounting currency and sometimes also referred to as the primary currency of a Forex currency pair. The price represents how much of the quote currency is needed to get one unit of the base currency.

When a currency is quoted against US Dollar, it is known as direct rate. Any currency not against the US Dollar is called a cross rate.

The quote currency is translated into a certain number of units of the base currency. This is also referred to as the foreign currency, secondary currency or counter currency. For example, if you find that a quote of USD/JPY is at 1.30, it says that for every 1 US Dollar, you get 1.30 Japanese Yen. When you quote for AUD/JPY of 67.73, it says that for every 1 Australian Dollar, you get 67.73 Japanese Yen.

Currency pairs are generally traded as 100,000 units of the base currency. For example, if you were buying EUR/USD at 0.95 you would be paying Dollars for Euros as follows:

100,000 x .95 = $95,000 for 100,000 Euros

When you find a quote going up, it means that the value of the base currency is rising or in other words, it is getting stronger. If a quote is going down, it means that the base currency is weakening.

The dominant base currencies are:

Euro - EUR/USD, EUR/GBP, EUR/CHF, EUR/JPY, EUR/CAD
British Pound - GBP/USD, GBP/CHF, GBP/JPY, GBP/CAD
US Dollar - USD/CAD, USD/JPY, USD/CHF

The currency pairs are usually traded and quoted with a ‘bid’ and ‘ask’ price. The ‘bid’ is the price at which you are willing to buy and the ‘ask’ is the price at which price you are willing to sell.

For example, if the USD/EUR currency pair is quoted as - USD/EUR = 1.5 and you purchase the pair, this means that for every 1.5 euros that you sell, you get US$1. If you sold the currency pair, you receive 1.5 euros for every US$1 you sell.