Who Should Trade Mini Forex Trading account?

Who Should Trade Mini Forex Trading account?

A mini forex trading account is designed for those who are new to forex trading or when the trade balance is less than $ 10,000.

Mini forex account key points

- Only $ 250 - $ 300 to open

- Up to 200:1 trade leverage

- 1 pip = $ 1 for EUR / USD and GBP / USD

- Lower trade size

Mini forex account benefits

Build confidence starting small

A trader can trade using a mini forex mini lot and building lot size slowly when he makes profits in his account. A general rule is to trade only 1 mini lot for every $ 1,000 merchant in mind. For example, if the account is worth $ 5,000, the trader can take up to 5 mini lots.

Developing a forex trading strategy

Since a mini forex account, the pip value is $ 1 = 1 pip, trader can pay more attention to building a solid trading strategy without focusing on floating profit and loss (P / L).
Most traders with small trading balance the standard account will tend to base trading decisions on profit and loss, not on their trading strategy, they are too emotionally involved.

Their balance fluctuations are so important that even can not think developing a proper trading strategy.
Their account size is too small for the lot size they take and every small pip loss can lead to painful losses in his trading account.

Such traders will tend to take profits (too) and cut losses soon too late because they always hope the trade will make a reverse and return.

Consider the following example:

A merchant has a $ 2,000 trading account.

When trading forex standard account, a 37 pip loss will result in a $ 370 loss in your trading account or 18.5% of his account. When making the same trade the Forex mini account, a 37 pip loss will result in a $ 37 loss in his trading account or 1.85% of their account.

Conclusion

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, in the long rum, this will lead to better trading results.




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