{"id":2093,"date":"2008-07-19T14:00:05","date_gmt":"2008-07-19T19:00:05","guid":{"rendered":"http:\/\/magic1host.com\/blog\/2008\/07\/19\/mini-forex-trading\/"},"modified":"2008-07-19T14:00:05","modified_gmt":"2008-07-19T19:00:05","slug":"mini-forex-trading","status":"publish","type":"post","link":"https:\/\/magic1host.com\/blog\/?p=2093","title":{"rendered":"Mini Forex Trading"},"content":{"rendered":"
by Ray Lam<\/div>\n

Mini forex trading is a way for people without a lot of money to trade the forex. It’s also ideal for fthose brand new to forex trading. Mini forex trading allows those new to forex trading to get a feel for it wihtout risking the amount of capital you would normally use when trading the forex.<\/p>\n

Forex trading until recently was reserved for banks and other large financial industries but thanks to the power of the internet and online currency trading, forex has now become feasible for everyday people. The forex market has become the largest trading market in the world and each day there is an estimated turnover of over $1.5 trillion dollars. Another added bonus is that forex trading is available 24 hours a day, 5 days a week unlike most other markets that operate on an 8 hour day. This means that people wishing to trade forex can do so at any given time.<\/p>\n

Forex currency trading is done is pairs and these are known as crosses. These pairs are always against the US dollar and the main crosses you will find when trading forex are the USD\/EUR and the USD\/GDP. The most popular crosses are known as majors and these can make forex traders great profits. Currencies change on a regular basis and are based on the how the world financial markets see the value of the currencies. You can sell or buy these currencies and forex brokers do not charge commission fees.<\/p>\n

Mini Forex trading is done in smaller contract sizes of ten thousand units, which is 1\/10th the size of the standard account. For opening a mini Forex account you would require 100-300 dollars. Here one PIP is equivalent to one dollar for EUR\/USD and GBP\/USD.<\/p>\n

Getting into mini account trading essentially means that you are engaging in marginal trading. That means that you are leveraging your trades, that is, borrowing money to be able to perform a trade without having to put in the full amount required for a single lot. The money that you do put in from your own pocket is known as a marginal lot. For a mini account, the marginal lot for every $10,000 lot is $50, or a 200 to 1 leverage. When you start a mini account with a minimum of $250, you are trading five mini lots.<\/p>\n

This means that you need a trading system in place and you must adhere to that system with iron fisted discipline and not let emotion get in the way and cause you more problems and headaches. Even in a mini forex account, you still need to know what you are doing and be familiar with various forex trading ideas and systems such as trade signals, proper chart points, targets, stop-loss and more.<\/p>\n

The average loss in mini Forex trading is one-tenth the amount that would be lost in an equivalent trade on a regular Forex account. Because of this, it is easier to exercise a more disciplined trading strategy, as an investor generally finds it easier to let go of a small loss, whereas a larger loss may prompt a trader to hold on to a lot longer than one should (a bad trading strategy). Furthermore, because the high leverage in mini Forex trading allows you to trade a number of lots for a correspondingly small amount, the investor has more options and trading strategies available.<\/p>\n

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About the Author:<\/div>\n
Learn more about forex trading online<\/a> and obtain a free copy of your FOREX Guide from http:\/\/www.forex-trading-guru.info – a popular FOREX website that specializes in providing FOREX tips and advice<\/a>.<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Mini forex trading is a way for people without a lot of money to trade the forex. It’s also ideal for fthose brand new to forex trading. Mini forex trading allows those new to forex trading to get a feel for it wihtout risking the amount of capital you would normally use when trading the forex.<\/p>\n","protected":false},"author":114,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[77],"class_list":["post-2093","post","type-post","status-publish","format-standard","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/2093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/114"}],"replies":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2093"}],"version-history":[{"count":0,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/2093\/revisions"}],"wp:attachment":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}