Minggu, 30 Desember 2007

The Great Things with Forex Mini Trading

by George Peters

For most people, participating in any forex trading seem to entail or involve a huge startup capital, thus discouraging them from accepting any proposal to trade in forex. These people would remain trading shares and stocks, which they perceive are more viable for their financial capability. But, there is a very good option for people who want to be in forex trading but have little capital -- forex mini trading.

The great thing about this is that one can earn a lot of profit as well as set time for pleasure when participating in forex mini trading. This uses a different leverage calculation than regular forex trading, though both are more or less the same in features.
With regular forex trading, 100,000 currency units is the size of the currency lots. Forex mini trading, on the other hand, will only entail 10,000 currency units, or just a tenth of the currency lot of regular forex trading. This results in lesser risks if one stands to lose.
This is how forex mini trading can work for you:

1. It has a low minimum starting capital. It only takes $300 to start a forex mini account. This is, in fact, very affordable for people who want to get into forex trading. With this investment, one can have the potential of earning profits in a very short time.

2. You can get a high leverage of up to 200:1 in a forex mini account. A small margin deposit requirement of $50 per lot traded is given. A high leverage is a great way to achieve a huge profit in a short time, and this is evident in forex mini trading.

3. In forex trading, one pip is equal to one dollar. There is only a small amount of risk when one trades in pips. For example, if one has a 30-pip floating loss, this amounts to only $30 in losses, which is smaller than a $300 loss in a 100K account. This makes the trader more disciplined in his dealings.

4. You can start with smaller trade sizes. The contract size in forex mini trading is 10,000 units, which is only a tenth of the standard account. This allows less risk in trading. One can increase trading as he or she gains valuable experience. This would mean more profits in the future since one has acquired discipline in trading from the very beginning.

Though you may only be trading with a mini account, all the benefits associated will full-size forex trading account will be enjoyed by the trader. This includes the modern trading software, resources, charts and so much more. As mentioned above, forex mini trading is ideal for beginners to forex trading since they can develop discipline and rationality in trading as well as lessen their losses.

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