milkymo Posted December 27, 2010 Share Posted December 27, 2010 In foreign exchange trading there is something called, a Mini Account, & it makes use of a different leverage calculation than a regular (100k) account. This is, in lieu of trading full-size money lots (100,000 units), you'll trade in lots that are just 1/10 the size (10,000 money units), which in turn greatly reduces your risk. Pips in a Mini Account are worth, on average, $1 in lieu of the $8 to $10 value they have in a regular account. The Mini foreign exchange account offers up to 200:1 leverage, this means that just a $50 margin deposit will let you 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 eight accounts discussed above: Mini Account - maximum necessary account deposit = $300 - Recommended necessary account deposit = $2,000 - Traded in 10,000-unit money lots - Default Margin: set at 0.5% ($50 per mini-lot) - Leverage = 200:1 100K (Regular Full-sized Account) - maximum necessary account deposit = $2,000 - Recommended necessary account deposit = $5,000 to $10,000 - Traded in 100,000-unit money lots - Default Margin: set at 1% ($1,000 per lot) - Leverage = 100:1 or 50:1 (if margin is set at 2%) 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 & 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 personalize the size of the trade lets you have a better risk management. With less capital in danger in a Mini FX account, it's simpler for you to create a disciplined trading methodology, as well as the confidence needed to be a successful money trader, without the anxiety & distractions that come with large Profit & Lose swings. 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 program, charts, resources, & tools, etc. This mini accounts are perfect for a brand new foreign exchange trader to create a disciplined, rational foreign exchange trading strategy without excessively focusing on profits & losses. Quote Link to comment Share on other sites More sharing options...
boniez Posted January 23, 2011 Share Posted January 23, 2011 for beginner is not recommened to trade in the standar and even mini account, and the suitable is micro account, perharps still tolerated to open with large lot Quote Link to comment Share on other sites More sharing options...
alam3636 Posted January 23, 2011 Share Posted January 23, 2011 Yup mini and full size lots are not recommended for newbies to trade in But one should trade only with .01 size lots that is to avoid very huge losses. Quote Link to comment Share on other sites More sharing options...
indieover Posted February 14, 2011 Share Posted February 14, 2011 yes when joining any broker. if you are beginner in forex better open an account that allows small minimum amount to deposit like $10. don't open account that requires like $300. but it will depend on each broker. as different broker has different kind of account . like one forex will have this liteforex account that allows $10 at least deposit to trade and their account requires bigger amount. but in other broker, they have only one trading account and allows as little as $10 and as big as you can afford. Quote Link to comment Share on other sites More sharing options...
sirwilly Posted February 15, 2011 Share Posted February 15, 2011 I guess it comes right down to your trading balance. The trader will decide on what lot size to choose depending on what amount he has at his disposal and his willingness to accept risks. Quote Link to comment Share on other sites More sharing options...
andry777 Posted March 1, 2011 Share Posted March 1, 2011 I am beginner in forex market and also i don't have too much capital to trade in forex market. If me, I will choose mini lot size in trading. And also I will use micro account or even cents account in my trading account. Quote Link to comment Share on other sites More sharing options...
Nikhil Posted April 9, 2011 Share Posted April 9, 2011 I think its better to use mini lot size in trading if we have small capital and always i done thats and still doing which will help to manage account smoothly without any big loss and although not big profit. but if we trade with high amount and have experience in trading than its sure to good to use full size lots. Quote Link to comment Share on other sites More sharing options...
bloger90 Posted April 9, 2011 Share Posted April 9, 2011 I also like mini lot account. My invest is small but it gives me a good opportunity to trade. I think mini lots age good for small investors. Quote Link to comment Share on other sites More sharing options...
Nikhil Posted April 10, 2011 Share Posted April 10, 2011 I also like mini lot account. My invest is small but it gives me a good opportunity to trade. I think mini lots age good for small investors. Actually with small deposit mini lots is not only helpful but it secure our account too and although market go against us it keep us alive but if we use full size with small capital than it possible to washout our account in short time. Quote Link to comment Share on other sites More sharing options...
boniez Posted April 21, 2011 Share Posted April 21, 2011 Actually with small deposit mini lots is not only helpful but it secure our account too and although market go against us it keep us alive but if we use full size with small capital than it possible to washout our account in short time. at least it is necessary for resistance our margins, even it is advisable to use a ratio of 1:1000 to our account so we can keep floating up over 1000 pips, even earn a little amount, but, it is satisfactory for a workout Quote Link to comment Share on other sites More sharing options...
Nikhil Posted April 22, 2011 Share Posted April 22, 2011 I also prefer 1:1000 although many broker dont offer this but they offer 1:500. anyway i traded in instaforex from many days thats broker offer 1:1000 but due to requite problem thinking to leave thats . anyway its very true this 1:1000 help us so if market goes against us although reward is also low if we dont increase lot size. Quote Link to comment Share on other sites More sharing options...
antthenait Posted July 11, 2011 Share Posted July 11, 2011 I think their way of thinking is too high that minimum deposit amount is $300, according to me I think $100 should be the best starter amount for any base trade/ Forex broker. I think this site might be doubtful . If anyone will get any payout then please give us support. This site never suite newbie user. Quote Link to comment Share on other sites More sharing options...
euro Posted October 2, 2013 Share Posted October 2, 2013 I think its extremely useful for newbie to use cents account and mini lots since they have to do that to prevent losses as a newbie since most newbie will lose their first 50 trades anyways so why not lose it in cents so you learn of ways to take profit. I lost at first as a newbie but as I gain experiences and learn how to manage my losses I gain daily in profit so do slow down at first with mini accounts. Quote Link to comment Share on other sites More sharing options...
Decub Posted January 10, 2014 Share Posted January 10, 2014 Well, it's all for the trader to decide, why $300 is quite big for some, to others, it's just a tip and not something they should cry over. Trading in large lots or mini lots depends on the amount of capital he can afford to lose and the level o knowledge he has. Well, to a newbie, going for a mini lot wouldn't be a bad idea if he can get it. Quote Link to comment Share on other sites More sharing options...
rexway Posted January 12, 2014 Share Posted January 12, 2014 Trading mini lots is very good at least its help reduce the risk of been loss here just that and that is why we need to focus on more analysis and trade with small lots for sure,. Forex is a risky business so as per this we need to do anything whithin our own reach to upset the risk and win the race Quote Link to comment Share on other sites More sharing options...
standart Posted January 17, 2014 Share Posted January 17, 2014 trading with mini lot or contract give traders chance to deposit with small capital. for traders who have lack of capital, choose to use mini or small contract help them to conduct trading. and if traders have high capital and able to trade with standard contract, they can open standard account which use standard lot contract. Quote Link to comment Share on other sites More sharing options...
Decub Posted February 19, 2014 Share Posted February 19, 2014 Exactly, it's about the difference in capital. When a trader is buoyant enough to take up the responsibility of investing big, then that's what does the whole thing. In the other case, where he feels he doesn't have the capital flow, then small lot size will come into play. Quote Link to comment Share on other sites More sharing options...
myregister Posted October 28, 2014 Share Posted October 28, 2014 This is depend on your total forex account balance, don't overdo yourself here so you can trade with full size lot. Mini lot for somene who have smaller account capital or even for expert alike who has bigger capital amount , while full size lot for someone who has bigger amount of capital only. Quote Link to comment Share on other sites More sharing options...
pepy Posted November 19, 2015 Share Posted November 19, 2015 I honestly prefer the full size lots than mini lots, Well even though the risk are set big enough for a full sized lots but the profit are also quite large. By keeping my risk management, i'm sure that i can even survive even i have full sized lots for i have a lot of capitals in my account, just say around $ 25,000. Quote Link to comment Share on other sites More sharing options...
myregister Posted November 23, 2015 Share Posted November 23, 2015 Full sized lot for sure, i agree with sidejob it is more profitable while also at the same time carrying higher risk. This is normal if you want bigger profit you must willing to take higher risk. 1 mini lot = $1 per pip while 1 full lot = $10 per pip so that is normal to choose which gives you better return. Quote Link to comment Share on other sites More sharing options...
pepy Posted December 3, 2015 Share Posted December 3, 2015 Even i said before i prefer full lot size but it doesn't mean use full lot size every time i want to trade, unless that is below my risk management for example my capital is around 1 million and using full lot size is not a big problem and which means that as long as i can keep my loss under control i will be always prefer full lot size. Quote Link to comment Share on other sites More sharing options...
myregister Posted December 12, 2015 Share Posted December 12, 2015 Same here i think by using full lot size we can fully use our potential as foreign exchange trader with this a trader might trade better and perform better. Seeing big profit usually make trader able to trade better and cheering their own psychology to manage the risk better and make quick decision. Quote Link to comment Share on other sites More sharing options...
pepy Posted December 14, 2015 Share Posted December 14, 2015 Actually in real trading 1 lot size the lowest as for the micro or mini lot usually it will be grouped automatically before your broker send it to the liquidity provider to see if they can get the more competitive price for each micro or mini lot. If you have small capital mini lots for you and full lots if you have bigger capital. Quote Link to comment Share on other sites More sharing options...
myregister Posted December 18, 2015 Share Posted December 18, 2015 In actual trading rhe lowest one is not one full size lot but micro lot. Some broker even put nano lot which is lower than those micro lot. Full size lot or one lot is preferrable by many people because of its feasible number and i think already become tradition in the global financial trading like forex. Quote Link to comment Share on other sites More sharing options...
Gee Dee Posted April 25, 2020 Share Posted April 25, 2020 At the point when we refer to call choices, on the off chance that the price of the share estimation of a currency pair remains beneath the strike price, these choices are said to be out-of-the-money. This implies it isn't gainful to make a move to practice our privileges, since we would lose money. At the point when we refer to put alternatives, on the off chance that the price of the share estimation of a currency pair surpasses the strike price, these choices are said to be out-of-the-money. An alternative can be profound out-of-the-money, or giving a huge loss and is probably not going to turn into a gainer. Quote Link to comment Share on other sites More sharing options...
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