abdulla1 Posted April 5, 2011 Share Posted April 5, 2011 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 Quote Link to comment Share on other sites More sharing options...
boniez Posted May 4, 2011 Share Posted May 4, 2011 trading with large lots that are very dangerous, if you use a little money capital so it is not recommended. especially if they are beginners, who have not trained in money management, may be destroyed Quote Link to comment Share on other sites More sharing options...
indieover Posted June 13, 2011 Share Posted June 13, 2011 i think that those full sized lots are only for big companies or people who have large amoutn of money to trade and like those who are trading with a group. but for individual traders i think that mini lot is more than enough. and yes it is dangerous for us small traders to trade in big lot . better stick with small lots. Quote Link to comment Share on other sites More sharing options...
andry777 Posted June 14, 2011 Share Posted June 14, 2011 I don't too much know, but I think Full Size Lot is account for traders who didn't need leverage pr they used leverage 1:1 Surely it will need huge amount of capitals and only few people who could do that. Mini lot is used by retail trader who used leverage. Quote Link to comment Share on other sites More sharing options...
standart Posted June 15, 2011 Share Posted June 15, 2011 I don't too much know, but I think Full Size Lot is account for traders who didn't need leverage pr they used leverage 1:1 Surely it will need huge amount of capitals and only few people who could do that. Mini lot is used by retail trader who used leverage. I also think if full size lot is for trader who trading without help from leverage facility. or same with use 1:1 leverage. or in other word, use big contract and 1 lot same with 100,000. Quote Link to comment Share on other sites More sharing options...
Nikhil Posted June 25, 2011 Share Posted June 25, 2011 yes i also prefer mini lot size and always trade with mini lots because of low amount and i think use full lot size is sometime risky and obviously not good for newbie trader if they have big capital also. anway its true many trader used full lot size but then they also have much experience and also big capital in their trading account. Quote Link to comment Share on other sites More sharing options...
antthenait Posted July 11, 2011 Share Posted July 11, 2011 Though it's a repeat matter, I think our way of thinking should be to move low to high. So I suggest you to never join this type of forex broker. Because $2000+; even $300 is too high or risky for any without know any broker status. Big amount is good for more profit but also a change of fool. So need to start any new site not more than $100. Quote Link to comment Share on other sites More sharing options...
yogeshwartyagi Posted July 15, 2011 Share Posted July 15, 2011 Well as much i understand mini lots are 1/10 size of a lot i mean there are 10 mini lots in a full size lot And so trading in mini lot allows those to trade in forex market who do not have huge capital - so they can take advantage of forex market playing with mini lots There are also brokers allowing trade in micro lots which is equalent to .01 lot such brokers require very little amount to start e.g. 1-10$ starting capital. Quote Link to comment Share on other sites More sharing options...
hyipreviewblog Posted July 22, 2011 Share Posted July 22, 2011 Mini trade are use by someone who don't really have a big capital or also by novice that still try to learn on forex. So if you really want to have a good profits from forex you need to open full size lot account and also need big principal to invest but with this account you just need to make 10%-15% monthly and it is a big profits. Quote Link to comment Share on other sites More sharing options...
yogeshwartyagi Posted September 4, 2011 Share Posted September 4, 2011 Usually mini lots are .1 lot so while trading in mini lots we can trade using 1/10 of the capital required for full size lot, yeah this is useful for those who want to trade with little capital and and bear little risk. Quote Link to comment Share on other sites More sharing options...
flybiz08 Posted March 28, 2012 Share Posted March 28, 2012 The lot sizes used by traders can be used to classify them. Mini lots are important to traders who are just beginning to get a foot in forex trading while those experienced traders trade with the full sized lots or the standard lots. For new traders, there is no place for these lot sizes. New traders should stick to the micro lots. Quote Link to comment Share on other sites More sharing options...
antthenait Posted May 1, 2012 Share Posted May 1, 2012 This kind of lots are used for perform different types of units. If we take any useful mini lot - then our chance will be come in splitting way. Because their are the part of a full size lot. People usually use those mini lot and broke their total units of items. By which they may able to find short items treader. Also some newcomers can take this feature for spend some part of their total money. Quote Link to comment Share on other sites More sharing options...
budado Posted May 2, 2012 Share Posted May 2, 2012 The lower the lot size the more chances you can survive market volatility. Right now I have 10 position in buy only and still survive without even in danger of getting get MC even though I loss about 150 pips already and since theirs 10 position just imagine the multiplicant of my loses. But still here I am surviving. Its because I trade the smallest lot as possible so that I can maintain my good free margin. Dispite of 10 open position at losing range I'm still have 300% free margin. Quote Link to comment Share on other sites More sharing options...
andisatria Posted February 4, 2013 Share Posted February 4, 2013 using a mini lot trade is not too high-risk and capital that we use to trade is not too big but if we do trade using the full lot size of risk that we will take very high and we also need a huge capital to be able to do trade using the full lot size Quote Link to comment Share on other sites More sharing options...
PROPENSITY100 Posted February 9, 2013 Share Posted February 9, 2013 The lot size we should trade should depend upon the estimation of the certainty of the trade. We should never enter a trade unless we sense an earning potential of 1 : 2 risk reward ratio. We should never open high lot sized orders simply with a view to earn more and quickly. Quote Link to comment Share on other sites More sharing options...
euro Posted September 30, 2013 Share Posted September 30, 2013 I think mini lots are so much better for newbie since it reduces your risk. Mini lots are also less risky for everyone. I prefer mini accounts and cents account as a new trader to get my hands wet on the forex market. I would also recommend that for new trader. I think high risk is not for the newbie. Mini lots are great for a start but it helps us relax since we are in no worry if we lose a couple of dollars. I like to lose less and its one of my strategy in money management. Quote Link to comment Share on other sites More sharing options...
screw_twizz Posted January 5, 2014 Share Posted January 5, 2014 i'm sure which people full measured tons are simply for huge firms or perhaps those who have huge amount connected with dollars to be able to industry and just like people who find themselves dealing having a team. but for specific professionals i'm sure which little lot is usually plenty of. and sure it can be dangerous for us tiny professionals to be able to industry inside huge lot. far better keep with tiny tons. Quote Link to comment Share on other sites More sharing options...
Alick Bannerman Posted June 11, 2015 Share Posted June 11, 2015 Thank you for explaining it so well, I believe these are the basic stuff that beginners must know and to be able to find it from reliable source is great. I usually learn from Baby Pips where this is explained really well while for rest I depend on OctaFX broker, it has lovely facilities with low spread of 0.2 pips, high leverage up to 1.500 and excellent demo account option that help us in a really great way to learn and practice. Quote Link to comment Share on other sites More sharing options...
pepy Posted June 12, 2015 Share Posted June 12, 2015 I think mini lots are so much better for newbie since it reduces your risk. Mini lots are also less risky for everyone. I prefer mini accounts and cents account as a new trader to get my hands wet on the forex market. I would also recommend that for new trader. I think high risk is not for the newbie. Mini lots are great for a start but it helps us relax since we are in no worry if we lose a couple of dollars. I like to lose less and its one of my strategy in money management. Mini lots for everyone even experts,this is just the numbers difference. The target is how much money you want to make? If you want to make bigger profit, there are 2 ways. First gain bigger pips second using bigger lot size. With full sized lots you can earn $10 per pips compared to mini lots which is only $1 per pips. Quote Link to comment Share on other sites More sharing options...
pepy Posted June 12, 2015 Share Posted June 12, 2015 I think mini lots are so much better for newbie since it reduces your risk. Mini lots are also less risky for everyone. I prefer mini accounts and cents account as a new trader to get my hands wet on the forex market. I would also recommend that for new trader. I think high risk is not for the newbie. Mini lots are great for a start but it helps us relax since we are in no worry if we lose a couple of dollars. I like to lose less and its one of my strategy in money management. Mini lots for everyone even experts,this is just the numbers difference. The target is how much money you want to make? If you want to make bigger profit, there are 2 ways. First gain bigger pips second using bigger lot size. With full sized lots you can earn $10 per pips compared to mini lots which is only $1 per pips. Quote Link to comment Share on other sites More sharing options...
Decub Posted June 15, 2015 Share Posted June 15, 2015 It is also good to add that when targeting bigger lots, your capital is of importance too. One can only dream of very high lots with bigger trading capital because small and very little investment has a limit to the lot size they can use even though you choose a high leverage, if not, stop out becomes your next milestone. Quote Link to comment Share on other sites More sharing options...
pepy Posted June 16, 2015 Share Posted June 16, 2015 Yes, exactly like what you said about this it is just the difference between how much lot you use, i can say 0.1 lot = mini lots, while 0.01 = micro lot, and 1 lot = full sized lots. I don't see any much different except for numbers, as long as you can use it fully and get more pips then you make more profit. Quote Link to comment Share on other sites More sharing options...
myregister Posted June 20, 2015 Share Posted June 20, 2015 Don't care if there are much difference because what? You are the one who trade, knowing this terms also useful but does not mean it's such an everything for you. As far as i know there's also the other terms such as micro lot which is about 0.01 lot size and the nano lot which is 0.001 lot. Quote Link to comment Share on other sites More sharing options...
novarisa Posted May 12, 2016 Share Posted May 12, 2016 Don't care if there are much difference because what? You are the one who trade, knowing this terms also useful but does not mean it's such an everything for you. As far as i know there's also the other terms such as micro lot which is about 0.01 lot size and the nano lot which is 0.001 lot. The gain is equal with the risk whatever how big or how small your trading volume is. The point is make sure that you can manage the risk. Don't take the risks that you can't even accept it. Quote Link to comment Share on other sites More sharing options...
myregister Posted May 14, 2016 Share Posted May 14, 2016 The difference located on the size, with mini lots you trade with smaller lot size compared to full lot sized. Also to achieve a set amount of profit you need less pips with full sized lots than mini lots but with consequences that your money may lose if you suffer a loss. Quote Link to comment Share on other sites More sharing options...
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