Given that the main way of making money in the stock market is when the market is going up, it is amazing to note that we can make money when the forex market is either going up or down. Most people think that forex trading requires a lot of cash. It is true if you are not aware of what is known as forex mini trading. This little instrument will make the difference.
The great thing about this is that one can earn a lot of profit as well as set time for pleasure when participating in it. This uses a different leverage calculation than regular forex trading, though both are more or less the same in features.
The difference is that it uses a smaller size of currency lots, only 10,000 currency units, compared to the 100,000 currency units utilized in regular forex trading. This means one can have a lesser risk in forex mini trading.
These are some of the other main features of forex mini trading:
1. First, one only needs a small startup capital of $300 to open a forex mini account. Compared to regular forex trading or other business endeavors out there, this is very affordable.
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 this type of 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.
You can enjoy the same features as well as the same benefits and regular forex trading. They have the same modern software, charts, resources and other sources needed to help them make decisions. This is perfect for people who are quite new to forex trading and those who want to join, but have limited capital. The great thing about this is that one develops a lot of discipline and decision-making ability since one is trading in lesser amounts. This means a whole lot since the risks and dangers in regular forex trading is lessened.