Forex Trading Guide - Forex Training Section

Welcome to Forex Trading Guide

Article

What�s the Difference of Trading Mini Lots Vs. Full-sized Lots in Forex.
Adrian Pablo

In 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 Training News

forex training

With grocery prices on the rise, fast-food restaurants are beefing up prices on their dollar menus, raking in extra profits. First-quarter earnings at these chains are expected to show slight upticks compared with the same period last year. Earn From ...

Return to the April 28 BusinessWeek Magazine Table of Contents. - BusinessWeek

Your inbox overflows with unanswered e-mails. You're running over budget and past deadline on a big project. And somehow, you still have to get home and have dinner with the kids. If this routine sounds familiar, take a look at the great strategies ...

Achieving Work-Life Balance - BusinessWeek

Jim O’Neill is Head of Global Economic Research for Goldman Sachs and has been in this position since September 2001. In this role, O’Neill oversees all of the firm’s economic research and the output of its team globally. O’Neill has spent ...

MARHedge World Wealth Summit 2006 - MAR

Accountancy Associates, LLC (AAL), an alliance partner of International Profit Associates, Inc. (IPA) and International Tax Advisors, Inc. (ITA), is a premier professional firm comprised of CPAs... ActForex, Inc New York, NY Since 2000 ActForex has ...

Financial Services - PR.com

Stewart Massey is a member of The College of Wooster's Board of Trustees where, since 1992, he has been the Chair of the Investment Committee and a Member of the Executive Committee. Ohio-based Wooster College has been ranked as having the highest ...

MARHedge San Francisco 2006 - MAR

Allison Kugel’s reputation as a talented writer and speaker became known within industry circles and it wasn’t long before Internet player PR.com tapped her to come on board to head... analyticsLife.com Wilmington, DE analyticsLife.com is a free ...

Computer & Internet Services - PR.com

Mark's interest in financial markets has been an ongoing affair, starting from college, where he dabbled in the local equity markets with his college fund. Finishing his BA in Public Administration, Mark remained passionate about trading, and started ...

Mark De La Paz - FXStreet.com

Valeria Bednarik has been an active Forex trader for the last 3 years, specializing in the International Foreign Exchange Market. She also graduates in the Universidad Catolica del Salvador, in Argentina, as a Public Account, specializing in ...

Val Bednarik - FXStreet.com

Justilien Gaspard is an independent consultant that provides custom link building, seo consulting and link training. His area of focus is organic search. He has spoken at Search Engine Strategies conference (SES), authored 3 advanced search ...

Justilien Gaspard - Search Engine Watch

チッソのカートリッジフィルターは、素材が三次元に熱接着されているので、濾材の脱落がありません。 メッキ液不良や、回路欠陥の発生を防ぐことができます。