If you are to name one type of online business that is considered to be innovative, it would have to be foreign exchange trading. Furthermore aside from the fact that it is very convenient, it is also considered to be one of the easiest ways to earn money knowing that there are more than sixty currencies internationally.
Forex trading used to involve only large corporations and banks because of the magnitude of the trades. However, since the coming of the Internet, forex trading has become accessible even for the average individual interested in dabbling in currencies.
To date, the forex market is considered the largest in the world, with a turnover of approximately $1.5 trillion a day. In addition, forex trading also operates 24 hours a day, unlike regular day trading sessions that last for only eight hours, giving forex traders an opportunity to buy and sell at any time they want.
Forex accounts are either regular or mini forex. In this article, mini forex account will be elaborated.
Mini forex trading
Small investors can get a good headstart in the forex trading market by first entering mini forex trading. Mini forex accounts are typically opened and accessed by traders who are relatively novices to the market and do not have enough resources to engage in a regular account.
Mini forex trading allows the trader to deposit only $100 to be able to control a currency position worth $10,000. With regular trade, currency positions should be at least $100,000. Mini forex trading, therefore, is one-tenth of the size of the regular forex trading account. It is a great way for small traders to get a feel of the industry and practice without having to shell out so much.
A mini forex account is perfect for a trader who wants to trade an amount that is lesser than $10,000. Through this approach, the trader will learn to be resilient with regards to developing different methods to earn more profits. Furthermore, mini forex tradings help them maintain their position in the forex market with lesser risks.
You might think its impossible to trade 10,000 worth of currency with just a meager deposit, but it is possible with mini forex trading. This is because you will have what is called ‘leverage’.
Leverage enables you to trade more of a particular commodity than what your account holds and affords you the opportunity to reap great returns. Too much leveraging is risky, though, so be careful not to get too excited.
If you think that getting a regular forex account is more beneficial, you’re wrong. In fact, the differences are not really that colossal when comparing regular forex account and mini forex account. Mini traders can still receive the benefits of a free trading platform, small spreads and many more.
But, as said earlier, perhaps the greatest advantage to opening a mini forex account is that you don’t have to spend so much to be able to see gains. You risk less money, but your earnings opportunities are still attractive.
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