Comments on: Forex – Understanding The Difference Between Mini-account & Standard Account Forex Trading

By: Charles P

Charles P — Sun, 16 Aug 2009 11:11:44 +0000

First of all you must have good trading discipline. Without it you are destined to fail. And you're right you need a good trading plan. Many successful traders have a very basic signalling system and with forex you get trade it either by fundamentals or by technical.

A Trading plan using fundamentals would be using news and economic releases.

A trading plan using technicals would use a charts. Start of using EMA's. Try a MACD or RSI. But remember to keep it simple.

By: ohboyyy

ohboyyy — Sat, 15 Aug 2009 17:49:06 +0000

The UMD system is for the professional and part-time trader who is looking to gain an edge in the market.

By: Dexter73

Dexter73 — Sat, 15 Aug 2009 05:39:11 +0000

By: InterestedObserver

InterestedObserver — Fri, 14 Aug 2009 00:21:36 +0000

The Price per pip depends on the currency you are trading and the position size you enter the market with. Here are a few examples that could be helpful:

Trading the GBP/USD with a position size of 0.1 lots(1 mini-lot) you will be trading at $1 per pip. If you take a position size of 0.01 (1 micro lot) you will be trading at 10 cents a pip. And of course if you trade a position size of 1.0 (1 standard lot) you will be trading at $10 per pip. In contrast if you trade the USDJPY you will be trading 95 cents per pip using 1 mini lot. There is a formula to determine the price per pip for each currency but the easiest way is to google "pip calculator".

As for leverage, the leverage on your account does NOT change the price per pip. The leverage determines the maximum exposure you can have. Meaning, at 100:1 the sum of all your positions currently open would be 10 times the allowable sum of all your positions at 10:1. It also means that at 100:1 you can hold positions in the market at about $100 for every $1 you have in your account (I say about $100 for every $1 because the every currency is different).

By: nickel

nickel — Thu, 13 Aug 2009 14:02:52 +0000

most probably nothing!

By: Andy

Andy — Thu, 13 Aug 2009 09:18:35 +0000

By: aishah a

aishah a — Thu, 13 Aug 2009 01:49:33 +0000

The lowest leverage that you can use in any Forex account is 1:1, although I don't know why anyone would do that. One of the main advantages of participating in the Forex marketplace is the ability to leverage your money.

There are other techniques to address risks associated with the Forex market without compromising the power of leverage. Drop me an email and I will send you some info that you might find useful.

Paul
pupp50@yahoo.com

By: aishah a

aishah a — Thu, 13 Aug 2009 01:47:26 +0000

$800 is fine for opening your mini account.

You can utilize leverage as low as 1:1 with most any broker and you can go as high as 200:1 or even 400:1.

Rather than focusing on the leverage, what you should actually be focusing on is the margin.

At a 5% margin on an $800 account you would be positioning $40 into the trade. At a 1:1 leverage you would be controlling only $40 of currency (less the spread or "commission"). At a 100:1 leverage you would be controlling $4000 of currency with the same $40.

I would be happy to send you some more info if this is confusing for you.

Paul
pupp50@yahoo.com