Micro Forex or how to trade cent accounts.
Trading on cent accounts has a number of its own characteristics, ranging from the choice of a cent broker to the volume of transactions performed.
This trading option, also called micro forex, is great for a novice trader, as it gives you the opportunity to practice on a real account without risking large sums of money.
It should be noted that, in addition to technical issues, there is some discrimination against traders who work on these accounts, since their orders are executed a little slower and the spread may differ from regular account options.
The main points that we will focus on in this article are the choice of leverage, trading strategy and the volume of transactions.
As well as a number of other nuances that you will encounter when working on micro Forex.
At the same time, all brokers have the most favorable trading conditions, you just have to decide on your choice.
Features of trading on a cent account.
First of all, I would like to note that you can not only train in micro Forex. But even if you earn a little money, with a successful set of circumstances, you can double your deposit within 24 hours, although maintaining it is an even more difficult task.
The main nuances you should know are:
• Leverage size – since you don’t have much money, you should choose a leverage of at least 1:100, and preferably 1:500, in this case, even trading with a 10 dollar deposit, you can make a significant profit.
However, it should be noted that the cent account was created not for making money, but more for testing strategies or advisors, as it allows you to understand how effective your trading option will be in real conditions.
• Lot size – the lot size when trading on micro Forex is $1000, and you can trade in a volume of 0.1 lot. That is, in this case, the minimum transaction volume will be equal to 100 conventional units, for example, 10 euros. Therefore, you can easily calculate that to buy a mini lot with a leverage of 1:100 you will need only 1.3 dollars.
In this case, you can’t count on big earnings.
• The size of one point – if in standard trading the value of one point on the EUR/USD currency pair is equal to 1 dollar, then when buying one mini lot the point will be equal to only 0.01 dollars or 1 cent.
Now it’s easy to calculate that by opening a deal with a volume equal to 1 lot ($1000) and making a profit of 100 points, you will earn a whole dollar.
• Feature of data display - units for this type of trading are displayed not in whole currency, but in cents. For example, if you have only 1.5 dollars in your account, you will withdraw an amount of 150 units in the trading terminal. The standard volume of 0.1 lot ($10,000) will be displayed as 10 lots.
That is, simply put, divide all the standard parameters by 100 and you will get the indicators that are used when trading on micro Forex, and it’s easier not to ask such a question at all, the trading terminal itself will convert dollars into cents.
Micro Forex allows you to make money only if the market is highly dynamic, so choose only those currency pairs for which there is a dynamic trend.
- Strategy for micro Forex - http://time-forex.com/strategy/strategiya-dlya-tsentovogo-scheta
- Cent brokers - http://time-forex.com/centovye-brokery