Forex Trading With Mini-Lots - A Way To Trade

Many people thinks that in order to enter the Forex trading world they will need to have a fat account on the bank so they can start benefiting from the many advantages offered by the Forex market. But nothing is most distant from the truth. You can trade forex even if you can t gather one grand in your bank account. Fortunately for most independent traders that don t have the huge funding banks have available there exists something called a Mini Account in Forex. It is different from the regular accounts because it uses a different leverage calculation than the regular, 100k accounts. What this will mean to you is that instead of trading full-size currency lots comprising 100,000 units, you ll trade in lots that are just 1/10 the size, this is only 10,000 currency units, which in turn will greatly reduces the risk you take in your trades. Pips in a Mini Account are worth, on average, $1 instead of the $8 to $10 value they have in regular accounts. 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 . Again the smaller lot sizes, with correspondingly smaller pip values, means that you ll be assuming less total risk while building enough capital to start trading regular accounts. Additionally, there is no downside to trading a mini account as some may think in a first approach. You will be enjoying all the benefits that full-size forex account holders enjoy; including the same state-of-the art trading software, the same charts, the resources, and tools, etc. We could say that this mini accounts are ideal for new Forex traders so they can develop a disciplined, rational forex trading strategy without excessively focusing on profits and losses when they are still learning. For more details about Forex trading visit my website: 1-forex.com