Difference Between Mini Lots And Full-Sized Lots In Forex Trading

In forex trading , there is something called a Mini Account , and it uses a calculation of the effect of different lever ( 100k ) regular account . That is , instead of currency exchange many full size (100 000 units ) , you trade in lots that are just 1 /10 of the size ( 10,000 currency units) , which in turn greatly reduces the risk . Pips in a Mini Account are worth an average of $ 1 instead of the value of $ 8 to $ 10 , they were in a regular account . Mini Forex account offers up to 200:1 leverage, meaning that only a $ 50 deposit margin will allow you to exchange a lot worth about $ 10,000 , but the sizes of smaller lots, with values ​​corresponding small glitches, means that you will be assuming less total risk. For example, if a loss of 20 pips on a position of $ 100,000 / JPY would be $ 200, the same loss on a position of $ 10,000 / JPY in a Mini account would amount to $ 20.

Here you have an overview of leverage ( Margin , Account Size ) on each of the two accounts described above:

100K (Regular Full-size account):-

- Minimum required account deposit = $ 2,000

- Recommended required account deposit = $ 5,000 to $ 10,000

- Traded to 100,000 units many currencies

- 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 to 10,000 units many currencies

- 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 enjoying all the benefits of FX account holders full size like , including even the state of 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 it is not the volume of trade up when you use a mini account . Although the standard trade size is 10,000 units , you are not limited to trading one lot. For example, you can trade 10,000 units , 50,000 units or 200,000 units. This means that you become more experienced and build the confidence you can slowly increase the size of your positions to maximize profits . In fact , the size of trade 10,000 units allows for greater flexibility in terms of customizing the size of your business. The ability to customize the size of the transaction 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 , as well as the confidence to be a successful currency trader , without the anxiety and distractions that come with large profit and loss swings.