Mini Forex Trading

Saturday, July 4, 2009,

Ashok Niroula

Mini Forex Trading

The MONEYFOREX Mini account was designed for those who are new to the forex market. The Mini forex account trades in smaller contract sizes of 10,000 units, which is 1/10th the size of the standard account. The smaller trade size gives traders the opportunity to trade live with less overall risk or exposure to the market. In addition, the Mini account allows traders to become familiar with MONEYFOREX, more specifically the quality and reliability of MONEYFOREX dealing practices and the stability of the MoneyForex Trader Trading Platform.

Important of Trading Strategy

Many traders will hold on to losses hoping it will reverse eventually, only to see the loss get progressively larger. The trading decisions are based on emotional reactions to fluctuating profits and losses, a common pitfall for new traders.

Because the pip value on the Mini Account is just $1 per pip, traders can focus on developing a disciplined trading strategy, basing decisions on pip movement and market conditions NOT P/L.

For Example: When trading a MONEYFOREX Mini account, a 50-pip floating loss is approximately $50. That same 50-pip move against you on the Standard Account now becomes a $500 floating loss. By starting with a Mini account- a trader loses only a small amount on every losing transaction making it easier to stick to a disciplined trading strategy. Generating larger losses on the Standard Account can be detrimental to new traders as the temptation to hold on to the loss is much greater based on the size of the loss.

Start Small with 10,000 units.

There is NO MAXIMUM trade volume on the MONEYFOREX Mini forex account. The standard default trade size in the platform is 100,000 units which equivalent to one standard lot. Therefore, for mini lot you need to adjust it to 0.1 lot in order to place 10,000 units. For instance, you can trade 10,000 units, 50,000 units or 150,000 units. This means as you become more experienced and build up confidence you can slowly increase the size of your positions to maximize profits. In fact the trade size of 10,000 units allows for more flexibility in terms of customizing the size of your trade. The ability to customize the size of the trade enables better risk and account management. To place trade for mini lot, please change the lot amount setting to 0.1.The current default setting is 1 standard lot. The default setting located in the Total Account(s) Equity Window under "DA".

Ideal for Beginners

MONEYFOREX recommends that all traders with account balances less than $10,000 trade a Mini account. This gives you more staying power in the market, and the ability to take advantage of multiple opportunities without over-leveraging your account. Even if you are correct on the direction of the market, minor fluctuations can generate a margin call and liquidate a good position.

Online Forex Broker Profile

Ashok Niroula

MoneyForex is one of the world leading online currency trading broker offering low pips and commission-free online forex trading. Founded by Wall Street veterans, MoneyForex's vision is to service individual and corporate investors such as money managers, banks, and financial institutions in easing the complexity in dealing with forex trading. Our dealing software which specialized in forex dealing is rated second to none for it user friendly environment. Lightning speed and efficient execution is one of its many benefits.

MoneyForex is incorporated in British Virgin Island (Registration Number 629302) under the provisions of the International Business Companies Act, 1984. MoneyForex is authorized to offer futures, securities, and foreign exchange as a forex broker and primary market maker.

MoneyForex is founded by a group of Wall Street Veterans who has more than 30 years experience in the financial market. Other than the financial industry, the group operates various businesses including real estate development, media communication, advertising, internet technology and software application and development.

In this complex forex market, a user friendly platform is a must in order to make fast and efficient trading decision and execution. Our trading platform is rated the most user friendly by professional traders. MoneyForex's clients consist of financial institutions, money managers as well as individual investors.

We take pride in our professional staff that is thoroughly trained to look after the best interests of our clients. Our professional staff is available twenty-four hours a day (Monday to Friday) to answer your inquiry. Try out our service by open a free demo forex account.

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