Welcome to The Ultimate Trading Guide
Forex Trading Platforms Article
This is a selection made from among articles on Forex Trading Platforms. For a permanent link to this article, or to bookmark it for future reading, click here.
What's the Difference of Trading Mini Lots Vs. Full-sized Lots in Forex.
from: Adrian PabloIn Forex trading there is something called, a Mini Account, and
it uses a different leverage calculation than a regular (100k)
account. This is, instead of trading full-size currency lots
(100,000 units), you'll trade in lots that are just 1/10 the
size (10,000 currency units), which in turn greatly reduces your
risk. Pips in a Mini Account are worth, on average, $1 instead
of the $8 to $10 value they have in a regular account. The Mini
Forex account offers up to 200:1 leverage, this means that just
a $50 margin deposit will allow you to trade lots worth roughly
$10,000 , but the smaller lot sizes, with correspondingly
smaller pip values, means that you'll be assuming less total
risk. For example, while a 20-pip loss on a 100,000 USD/JPY
position would be $200, the same loss on a 10,000 USD/JPY
position in a Mini account would amount to $20.
Here you have an overview of leverage (Margin, Account Size) on
each of the two accounts discussed above:
100K (Regular Full-sized Account) - Minimum required account
deposit = $2,000 - Recommended required account deposit = $5,000
to $10,000 - Traded in 100,000-unit currency lots - Default
Margin: set at 1% ($1,000 per lot) - Leverage = 100:1 or 50:1
(if margin is set at 2%)
Mini Account - Minimum required account deposit = $300 -
Recommended required account deposit = $2,000 - Traded in
10,000-unit currency lots - Default Margin: set at 0.5% ($50 per
mini-lot) - Leverage = 200:1
There is no downside to trading a mini account , you will be
still enjoying all the benefits that full-size FX account
holders enjoy; including, same state-of-the art trading
software, charts, resources, and tools, etc. This mini accounts
are ideal for a new Forex trader to develop a disciplined,
rational forex trading strategy without excessively focusing on
profits and losses.
Also there is no maximum trade volume when you use a mini
account. Although the standard trade size is 10,000 units, you
are not limited to trading one lot. For instance, you can trade
10,000 units, 50,000 units or 200,000 units. This means as you
become more seasoned and build up confidence you can slowly
increase the size of your positions to maximize profits. In fact
the trade size of 10,000 units allows for more flexibility in
terms of customizing the size of your trade. The ability to
customize the size of the trade allows you to have a better risk
management. With less capital at risk in a Mini FX account, it
is easier for you to develop a disciplined trading methodology,
as well as the confidence needed to be a successful currency
trader, without the anxiety and distractions that come with
large Profit and Lose swings.
About the author:
Adrian Pablo; Forex trader
and freelance writer.
You can download a free Fibonacci trading report at his website:
http://www.1-forex.com
 |
 |
Forex Trading Platforms News
Forex Trading Conditions Improve After Coordinated Effort to Boost ... - Daily FX
 CNBC | Forex Trading Conditions Improve After Coordinated Effort to Boost ... Daily FX, NY - Forex trading conditions, including BID/ASK spreads and overall market volatility, have been improving over the last two days on speculation that actions ... * Yen rises broadly on fears over global economic slowdown EURO: SLIPS BELOW 1. 36 DOLLARS AFTER MOVE BY ECB Market Overview by Forex Yard |
Avalon Capital Holdings Announces Contest Registration Extension - MarketWatch
Avalon Capital Holdings Announces Contest Registration Extension MarketWatch - The contest features the Company's proprietary Avalon FX Pro(TM) 4.1 Trading Platform. Traders from all over the world can register for the contest by ... |
Trading Signals Fade Volatility, Sell Yen, Franc - Daily FX
Trading Signals Fade Volatility, Sell Yen, Franc Daily FX, NY - Our Automated Forex Trading Signals bought GBPCHF, EURJPY, and EURCHF using the Range1 system despite the trio having southward trending characteristics. ... |
Iceland c.bank sets up temporary FX trading system - Forbes
 BBC News | Iceland c.bank sets up temporary FX trading system Forbes, NY - REYKJAVIK, Oct 15 (Reuters) - Iceland's central bank said on Wednesday it had set up a temporary trading system to allow for international currency ... Drops policy rate to 12% from 15.5% after banking-sector collapse Iceland cuts interest rates in bid to revive economy Iceland Cuts Key Interest Rate to 12% From 15.5% (Update2) |
FOREX-US dollar, yen gain as risk appetite diminishes - Reuters UK
 BBC News | FOREX-US dollar, yen gain as risk appetite diminishes Reuters UK, UK - The yen will also continue to do well," said Mark Frey, vice president of FX trading at Custom House, a global payments dealer in Victoria, British Columbia ... FOREX-Euro falls to session lows vs dollar, yen The Long Road Back |