In currency trading there is a thing called, a Mini Account, and it uses a different leverage calculation than a regular account. Pips in a Mini Account are worth, usually $1 rather than the $8 to $10 price they have in a regular account. As an example, whilst a 20-pip loss on a 100,000 Greenbacks / JPY position would be $200, the same loss on a ten thousand Dollars / JPY position in a Mini account would amount to $20. Here you’ve got an outline of leverage ( Margin, Account Size ) on each one of the 2 accounts debated above : 100K ( Regular Full-sized Account ) - Minimum needed account deposit = $2,000 - Advised needed 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 needed account deposit = $300 - Counseled needed 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’s no disadvantage to trading a mini account, you’ll be still enjoying all of the benefits that full-size FX account holders enjoy, including, same state-of-the art trading software, charts, resources, and tools, and so on.
This mini accounts are ideal for a new Currency exchange trader to develop a controlled, sane currency trading strategy without excessively targeting profits and losses. Also there’s no maximum trade volume when you employ a mini account. Though the standard trade size is ten thousand units, you aren’t restricted to trading one lot. For example, you can trade 10,000 units, fifty thousand units or 200,000 units.
This implies as you become more seasoned and build up confidence you can slowly increase the dimensions of your positions to maximise profits. In reality the trade size of ten thousand units allows for more suppleness re customising the dimensions of your trade.
With less capital at risk in a Mini FX account, it is less complicated for you to develop a controlled trading method, as well as the confidence wanted to be a successful currency trader, without the stress and distractions that come with huge Profit and Lose swings.
