Mini foreign exchange accounts or foreign exchange mini accounts are typical accounts used by daily traders who do not want to trade large amounts of capital using 100,000 or more contract sizes. Forex mini-accounts typically offer a contract size of 10,000 instead of 100,000. The margin requirement for each contract is usually $50 or more instead of the $1,000 to $2,000 contract required for each regular account.
High leverage and low profit margins in these mini forex accounts play a very important role in amplifying transaction gains and losses. The mini-forex trading account has a lower minimum account limit than a regular account, which enables small investors to trade in foreign currency for one day.
Many currency brokers offer a wider range of spreads for mini accounts, and most of them do not charge any transaction fees for transactions. If the base currency of the mini-contract is 10,000 units, then all ranges are one-tenth of the regular account of 100,000 lots. For example, the value of a euro/dollar 1 point for a mini-contract is $1 instead of $10 for a normal account.
Mini foreign exchange accounts are designed for new investors. Smaller deals give traders the opportunity to trade in the field, but with less risk or exposure to the market. If you plan to open automatic or hosted foreign exchange accounts with some brokerage companies, we suggest that you open a mini account instead of a regular account, because you can check the quality, reliability and functionality of the trading platform without causing losses.
Since the mini-forex account has a point value of only $1 per point, you can focus on developing a disciplined trading strategy. For example, in a mini-forex account, the 50-point floating loss of a standard foreign exchange account is approximately $50 instead of $500. Therefore, mini forex accounts can more easily formulate rigorous trading strategies.
In most mini forex trading accounts, there is no limit to the maximum volume, and the standard default volume can be 100,000 units, which is equivalent to a standard lot size.
This ensures that you become more experienced and confident before you increase the size of your position to maximize your profits. In fact, a 10,000 unit transaction size can provide greater flexibility in customizing the transaction size.
Mini Forex Account offers all the benefits of a full-size Forex account. You will receive the same real-time streaming quotes as a regular account with the same order fulfillment and report filling function. Account information will always be real-time, and in most cases, no broker will charge any commission.
Because of the difference in point values between different currency pairs, a $10K account that earns 25 points in a mini-forex account is traded in the euro for $25. Therefore, the mini-forex account allows you to focus on technical analysis rather than the right point for profit and exit.
Applicable to new traders or investors whose account balance is less than 10,000 US dollars to trade with mini foreign exchange accounts. It provides more stamina in the market while not overusing your account.
For the initial deposit of $250, you can open and inject into the live foreign exchange mini account via bank wire transfer or credit card transfer. Mini foreign exchange accounts are a great way to experience incentives for currency trading while minimizing risk.
[ad_2]
Orignal From: How to Start Trading on a Mini Foreign Exchange Account
No comments:
Post a Comment