Friday, September 22, 2023
  • Login
GoTradingAsia
  • Awards
  • Forex
  • Crypto
  • Stocks
  • Education
  • Broker Directory
  • Contact us
No Result
View All Result
GoTradingAsia
  • Awards
  • Forex
  • Crypto
  • Stocks
  • Education
  • Broker Directory
  • Contact us
No Result
View All Result
GoTradingAsia
No Result
View All Result

What is a Forex Mini Account in Trading?

Clarissa by Clarissa
4 years ago
in Forex & Market, Forex Tips

Remember when you learned riding a bicycle when you were a kid? You started with a mini bike with training wheels, right? You enjoyed riding it while minimising the risk of getting out of balance. 

Learning to ride a bike doesn’t mean that you should take all the risks at first try. Forex trading offers a similar story. It’s exciting, and with all the wealth it promises, you’ll surely want to ‘ride’ right away. But for the inexperienced ones, it’s the most dangerous way to start trading currencies.

Then what should one do if he wants to try trading firsthand? 

A Forex mini account offers a solution to this problem by letting newbies trade Forex and shield them from the big risk that comes with it. 

RelatedArticle

Wall Street Focuses on AI Tech and Volatile Market

How to Gain Profit During Recession

How to Identify Trending Market

What is CFD and Why You Should Try it Now

Mini Forex Account 

A mini Forex trading account allows traders to have a bite-size of a standard lot of 100,000, by giving them the one-tenth of its size. When a trader uses a mini lot, one pip of a currency pair based on US dollars is equivalent to $1, compared to a standard $10. 

What’s in it for Traders? 

It offers a significantly less risk by allowing traders to start with an upfront capital between $50 to $500. With a relatively small cash to deposit, it will have minimal impact on traders if they ever experience setbacks. 

Indeed, this is an opportunity to learn Forex trading – without risking too much money in the process. 

The minimum deposit in a mini Forex trading is not fixed and depends on a Forex broker. But even if the required deposit varies, one thing remains certain: it will only require ‘mini’ cash compared to a full-fledged Forex trading. 

The Mini Caution 

Even an account like mini comes with risks. Risks may arise when traders decide to use leverage and their currency pair makes a small adverse move. But a trader can lessen its impact by starting outside the bracket of minimum deposits. Starting this way will enable traders to manage the amount of leverage more efficiently. 

The Mini’s BIG Advantage 

By using a mini account, a trader can make an equivalent trade to that of a standard lot. Instead of trading a full-sized lot, a trader can trade ten mini-slots instead. But does that make any sense? Yes, because by trading bite-sized lots, a trader can customise his trade. Aside from that, a trader will have an increased control over the risks that may come. 

Good for Testing the Waters

If you think that mini accounts are just for newbies, you’re wrong. In fact, they are used even by the most seasoned Forex traders. This is because they prefer to try a new system or strategy without losing too much money. A mini account is a perfect way to do this as they can experiment without too much risk.

Conclusion 

In trying out new things, you don’t necessarily have to jump right away and embrace all the risks. Whether you want to learn to ride a bike or try Forex trading, there are ways to experience it with minimum risks. 

Also read: MAM and PAMM Accounts in Forex

Clarissa

Clarissa

Related Posts

Wall Street Focuses on AI Tech and Volatile Market

stocks transition
by Putriyana
July 3, 2023

The initial six months of 2023 have been characterized by an unusual and tumultuous market environment in Wall Street. Investors...

Read more

How to Gain Profit During Recession

by D. Atika
June 19, 2023

After the Great Recession, many investors have learned lessons. Instead of selling in the panic, they should have had held...

Read more

How to Identify Trending Market

by D. Atika
May 24, 2023

Trending is when there are continually higher or lower prices (on average on the number of periods) in the price...

Read more

What is CFD and Why You Should Try it Now

by D. Atika
August 9, 2022

Ever heard of CFD? Lately, it is the hottest asset classes to be traded. Now if you've heard of it...

Read more
Load More
Next Post
Money Lies Millennials Need to Stop Telling Themselves

5 Money Lies Millennials Need to Stop Telling Themselves (Part 2)

Trending Issues

  • Cristiano Ronaldo makes Coca-Cola losing millions businesses

    Cristiano Ronaldo and His 6 Successful Businesses

    0 shares
    Share 0 Tweet 0
  • The Fed Maintains Key Interest Rate

    0 shares
    Share 0 Tweet 0
  • 5 K-Dramas to Watch for Some Money Lessons

    0 shares
    Share 0 Tweet 0
  • Projecting Investment with Alpha Approach Pt. 2

    0 shares
    Share 0 Tweet 0
  • Pros and Cons of Taking a Break from Trading

    0 shares
    Share 0 Tweet 0

Get the latest market news and trading tips to your inbox daily, subscribe now !

Topic

  • Asia News
  • Asia Trade
  • Bonus+Promotions
  • Broker News
  • Business News
  • Cryptocurrency
  • Currency Analysis
  • Finance News
  • Forex & Market
  • Forex Tips
  • Hot News
  • Investment Tips
  • Learn to Trade
  • Market Analysis
  • Politics Issue
  • Reviews
  • Social Media
  • Stock Analysis
  • Stock Market
  • Stock Trading Tips
  • Technical Analysis
  • Tips
  • trading strategy
Go Trading Asia

Go Trading Asia covers the latest in Business and Economic News and Market Analysis, with the aim of Providing Readers with the knowledge and tools to make better informed financial decisions.

  • Contact us
  • Privacy Policy
  • Disclaimer

© 2021 Go Trading Asia.

No Result
View All Result
  • Awards
  • Forex
  • Crypto
  • Stocks
  • Education
  • Broker Directory
  • Contact us

© 2021 Go Trading Asia.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In