Forex Trading Guide - Active Forex Trade Section

Active Forex Trade Navigation



Arbitrage Forex
Mini Forex
Advanced Forex Signal
Global Forex
Forex Seminar In Atlanta
Ivybot
Free Forex Ebooks
Forex Signals Chart
Forex Traders
Learn To Trade Forex
Forex Shipping
Dollar Forex New Zealand
Forex Wizard
Moneytec
Forex Ebook
Forex Calculator
Forex Market News
Fxtradingsystem
Eurogest Forex
Forex Trading Forums
Forex Strategy Training Courses
Day Trade Forex
Day Trade Forex
Forex Real Time
Best Of Forex Neural Network For Forex


2005 Best Seller!

forex strategy explained
Buy it now


Best Active Forex Trade products

Main Active Forex Trade sponsors

Active Forex Trade

 

 

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



Active Forex Trade News

active forex trade

Go to the new RSS page and renew your subscription.]]>

Read more


IMPORTANT: Bing News RSS feed has moved!

Active FX traders may likely be more pleased with an ECN ... Article was written by Alexander Collins, who is a creator of Forex robots and blogger. Also find out Forex trading tools for better Forex trading on Alexander’s blog.

Read more


ECN Vs. The Market Makers: Who’s The King Of The Hill?

Learning the ABC of trading was fast, due to intense interest to ... He later joined the same team at FXInstructor, an online Forex Education company, where he was active for 3 years as an instructor & mentor for hundreds of students.

Read more


London Session Scenarios on GBPUSD & GBPJPY - Free Access Day

The RBI had tried hard to intervene by selling dollars in the forex market but that did not help ... Most Indian corporates and traders are active in the OTC market for their hedging or speculative requirements. The rupee is also traded in ...

Read more


Forex and the RBI: For a few dollars more

CHICAGO, Feb. 1, 2012 (GLOBE NEWSWIRE) -- PFGBEST today announced availability of the dynamic "Focus And Select Technology" (FAST) for active traders on ... specializing in electronic trading, futures, forex, options, managed accounts, research ...

Read more


BESTDirect(R) FAST, Powered by PFGBEST(R) Electronic Trading Platform for Active Traders to Execute Dynamic Orders and Strategies Online

and implications for trading futures and options on stock indexes, forex, grains, precious metals, and more. Suitable for both short-term traders and active investors with a two- to three-week holding time frame.

Read more


Trading Outlook for Today: February 6

director of currency research at GFT Forex in Jersey City, New Jersey. With traders on the alert for action, primarily from the Swiss National Bank and the Bank of Japan, trading in those currencies became less attractive, Lien said. The SNB ...

Read more


UPDATE 2-Global forex volumes dip, up in N.America

futures and forex. "This unique capability found only from Recognia offers high-value content for active traders interested in getting into new trade opportunities quickly, before other investors have the chance to respond," said Recognia CEO Rick Escher.

Read more


CORRECTING and REPLACING Recognia Launches One-of-a-Kind Feature for Active Traders, Anticipated Events(TM)

The GBP/USD has continued to trade within the confines of an ascending channel ... Note that the scalp will not be active until a break below channel support or a rebound off 1.5760 or subsequent resistance level with RSI conviction.

Read more


New British Pound Scalp Setup Pending Break Below Channel Support

ICICI Bank (NYSE:IBN) is a company whose shares are active, trading 2.0% lower to $37.52 ... The Group specializes in retail and corporate banking, in addition to Forex and treasury operations. ICICI Bank also provides a wide variety of investment banking ...

Read more