Mini Forex Trading

Here’s Exactly How To Get More Out Of Mini forex Trading AccountsThan You Ever Though Possible

by Martin Martinez

What are the advantages of trading a mini forex account?

With a mini forex trading account, the lot or contract sizes that are traded are 10,000 of the base currency, whereas for a Standard account, the lot sizes are 100,000; in other words, the mini contract is 1/10th the size of the standard contracts.

How can you trade 10,000 worth of a currency with only $250 in a mini forex trading account?

The answer is because of “leverage.” Leverage allows you to trade more of a given commodity (stocks, currency, futures, etc.) than you have money in your account to do. With a mini account, the margin deposit requirement per $10,000 lot traded is $50. That means that the leverage is 200 to 1 (10,000 divided by 50 is 200).

Thus, with $250 you could trade a maximum of 5 mini lots, with $500 a maximum of 10, with $1000 a maximum of 20, etc. This leverage is 50 times greater than for stocks (day trading stocks provides a 4 to 1 intraday leverage for traders that have $25,000 or more in an account by U.S. law).

Using a high degree of leverage is not always appropriate, but at least the superior leverage found in a mini forex trading account provides the trader with a greater degree of flexibility in the implementation and execution of different trading strategies.

Mini Forex Trading example

If you are trading the currency pair EUR/USD with a Standard account and set a 25-pip limit, this is equivalent to a potential gain of $250 because a 1 pip move is equivalent to $10(pips and other basics terms are explained in our free forex education video).

With a mini forex trading account, this is equivalent to $25 because, remember that a mini lot is 1/10th the value of a standard contract – [$10 a pip for a standard account / $1 for a mini forex account]). As a result of this, trading in units of 10,000 gives the smaller trader more flexibility in customizing the size of his trades and managing his risk.

Traders that want to trade with less than $10,000 are better off opening a mini forex account rather than a standard account. This will not only give a trader more flexibility in the implementation of different strategies, it will also give him more staying power in the market since he could take advantage of multiple trades without over-leveraging his trading account.

What are the disadvantages of trading a Mini forex account?

Nothing would make me happier than to share this insider secret with you. However, I can not reveal this insider information on this site due to my confidentiality agreements with my brokerage services company.

The good news is that nothing prevents me from providing this information through the post office or phone. Just contact me via the contact us form and I will send you the “insider report” most forex brokers do not want you to know about!

Sorry about the inconvience – but this is the real deal no tricks here. My goal is help you succeed as a forex trader. When you succeed I succeed!

I know the struggles you are going through and by modeling success you can avoiding decades of mistakes that I made.