General Mini Trading Information
In addition, the Mini forex account allows traders to become familiar with the quality and
reliability of the FX Trading Station.
 $300 minimum account size |
New FX traders |
| Up to 200:1 leverage* |
Account balance is less then 10K |
| 1 pip = $1 |
New to FOREX |
| Smaller trade size |
Need to build confidence |
There is no downside to trading a Mini Account. The Mini account utilizes the same state-of-the
art trading software AND offers you the following advantages:
| 1. Develop a Disciplined Trading Strategy |
Ask any successful trader and they will tell you that the key to trading success is discipline. Everyone has heard the expression “cut your losses and let your profits run” yet how many traders actually practice this?
Many traders will hold on to losses hoping it will reverse eventually, only to see the loss get progressively larger. These “irrational” trading decisions are based on emotional reactions to fluctuating profits and losses - a common pitfall for new traders.
Losses can AND WILL occur. A trader's ability to limit his losses is just as important (or even more important) then determining entry points.
Because the pip value on the Mini Account is just $1 per pip – traders can focus on developing a disciplined trading strategy basing decisions on pip movement and market conditions.
Consider the Following Example:
When trading a Mini Forex Trading account, a 30-pip floating loss is approximately $30. That same 30 –pip move against you on the 100K account now becomes a $300 floating loss. 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.
Generating larger losses on the 100K account can be detrimental to new traders as the temptation to hold on to the loss is much greater based on the size of the loss.
| 2. Start Small. Build Up Confidence |
There is NO MAXIMUM trade volume on the Mini Forex Trading 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 150,000 units.
This means as you become more seasoned and build up confidence you can slowly increase the size of your positions to maximize profits (and losses). 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 enables better risk management.
We recommend that all traders with account balances less than $10,000 trade a Mini account. This gives you more staying power in the market, and the ability to take advantage of multiple opportunities without over-leveraging your account. If you over-leverage your account you will not give yourself room for error. Even if you are correct on the direction of the market, minor fluctuations can generate a margin call and liquidate a good position.
But don't just take our word for it. For just $300 you can open and fund a live Mini Forex account and see for yourself.
*Leverage without proper risk management, this high degree of leverage can lead to large losses as well as gains.
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Forex Trading... Because we know how!
