The smaller version of the typical Forex account is the concise Forex mini account. $2000 is the minimal amount required to open for standard accounts. A mini account can be opened with as little as $400.
With regards to trading lots, “mini lots” is the label used for Mini accounts. Standard Foreign exchange accounts have a pip value of $10 and so a market movement of 100 pips in a movement favoring you would accrue a $1000 profit. In mini accounts, $1 is the pip value so progressive movement of 100 pips would bring $100 for you.
If you’d like to open up an account with even less dollars than any mini account there is an option of a “micro account”. $25 is all you need to start one. In this account, $10 would be the profit of a upward 100 pip movement.
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The smaller Forex accounts such as the Forex mini account are extremely convenient for those getting started in Forex trading. Even though there are demo accounts available which mandate no real money to trade, a mini account can serve a unique purpose.
This value comes from the fact that mini accounts use real money to transact. Using it grants you to trade in a manner that will resemble your trading behavior in the event that you choose to open the standard foreign exchange account.
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You see, with a Forex demo account you actually have nothing at risk. Therefore this play money is not really traded resolutely. This is the reason so many entry level Forex traders do fascinating things in their Forex demo account but then do terribly when trading with real money in a standard account.
Your objective while trading your Forex mini account is to approximately replicate what you will do when you step up to a standard account. The chance to test drive your system of trading is there but your dormant monetary losses are much less.
So you don’t defeat the purpose, you must, for all intents and purposes use the same style of risk analysis and have the same appreciation for the mini as you do your standard account. The end result would be successful FX trading by accommodating the suitable discipline levels.
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Finally, when you are content with your percentage of earnings on your mini account, you can then elevate to the standard account knowing that you now carry the skills necessary to succeed.
Disclaimer: FX trading can be dangerous, can end up in material losses, and is not suited for everyone.