Forex Mini Trading - 7 Things You Really Ought To Know

[Claude Powell]

Trading the forex market using a mini account is a great way to get
you started in forex trading. Below are 7 things you really ought to
know when opening a forex mini trading account.
1. Minimum AmountMini forex accounts are usually opened by traders who
are new to the forex market and do not have the funds to open a
regular account. A forex mini account can be opened with as little as
$50 to about $300, whereas a regular account usually requires $2,500
or more.
2. Mini Account Contract SizesIn a mini account, the minimum trading
lot size or contract size is 10,000 per contract, whereas for a
regular forex account, the lot sizes are 100,000. This means that the
mini forex contract is 1/10th the size of the standard contracts. The
smaller trade size gives traders the opportunity to trade live with
less overall risk or exposure to the market
3. No. of Currency Pairs OfferedMost brokers offer the same number of
currency pairs that you can trade whether you are using a mini account
or a regular account. Just make sure the 6 major currency pairs are
there: EUR/USD, GBP/USD, USD/CHF, USD/JPY, AUD/USD, USD/CAD. These
currency pairs account for 90% of the total daily FX trading volume.
4. LeverageLeverage allows you to trade more of a currency that you
have money in your account. This means that if you have $200 in your
mini account and your broker gives you 100:1 leverage, you can trade
up to $20,000 in forex. Use leverage carefully. It can magnify your
gains but also your losses as well.
Fortunately, with a forex mini trading account, because the lot sizes
are 1/10th of the regular contract, your potential losses are also
1/10th the size. For example, if you are trading with a regular
account and incur a 30 pip loss, this is equivalent to a loss of $300.
With a mini account, this translate to about $30 only.
5. Same Features as Regular AccountsForex mini trading accounts are
great for traders with less than $10,000 to start. You have all the
same features and tools as the regular accounts. That means you will
enjoy the same trading platform, charting, market analysis, spreads,
customer service, etc. 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, 20,000 units or 80,000 units. This means as you
become more seasoned, you can slowly increase the size of your trades
to maximize your potential.
6. Develop a Disciplined Trading StrategyWhen trading a mini forex
account, a 20 pip floating loss is approximately $20. That same 20 pip
movement against you on the regular account now becomes a $200
floating loss. By starting with a mini account, a trader loses only a
small amount on every losing transaction making it easier to stick to
a disciplined trading strategy. Education and discipline trading are
key to your success in forex trading.
7. Build Confidence With a Mini AccountOpening a mini account with a
broker lets you test out their trade execution time, services and
spread movement. Although a broker may advertise narrow spreads, these
spread can change during releases of economic data and other important
news. It also allows you to test out different trading strategies
while minimizing your risk exposure. As your trading confidence grows,
you can then upgrade to a regular account.
Disclaimer: Please note that forex trading involves substantial risk
of loss, and may not be suitable for everyone.

The Next Generation of Forex Robot - http://www.theacyclone.tk/