The forging method with horizontal V-shaped anvils (HVA) is effective in the control of inner stress states, metal tissue, etc. FEM numerical simulation is conducted for the HVA forging method, under various processing parameters. The results show that during HVA forging, the transversal and axial stress states in the middle part of forgings are influenced by not only the ratio of the anvil width to billet height (anvil-width ratio )but also the ratio of the blank width to billet height (blank-width ratio) and the reduction ratio, while the end parts are influenced little. Among those processing parameters, the reduction ratio plays an important role. When the reduction ratio is 5% or 10%, it is possible to obtain axial and transversal tensile stress. When the reduction ratio is larger than 15%, it is easy to obtain two-way compressive stress. Therefore, in order to control the two-way tensile stress, big reduction ratio should be adopted. Small blank-width ratios result in the forgings cracks because of transversal tensile stress in common flat-anvil stretching method. On the contrary, even if the blank-width ratio is small, transversal compressive stress can be generated in forgings for the HVA forging method, only if the matching of the anvil-width ratio and the reduction ratio is suitable. The feature of the HVA forging method benefits the preventing forgings from inner cracks. The results provide the theoretical foundation for the application of the HVA forging method.