Cent Forex and important features of trading on cent accounts
Novice traders think that a large deposit is required to trade Forex, but in practice this is not quite the case; you can start trading with a minimum capital of just $1.
For these purposes, the so-called cent Forex is used, which allows you to check the operation of your own trading strategy or test an automatic advisor.
The main purpose of such accounts is to test strategies, but with the right skills, some even manage to make good money on them.
True, you should not think that cent Forex is always trading with a couple of dollars; very often you can find traders trading there with a deposit of 500 dollars or more.
There are a number of features of working with cent accounts, which is exactly what will be discussed in this article; in addition, I will give a number of recommendations that tell you how to make money here with minimal capital.
The main features of cent forex
Cent brokers are companies that allow you to start trading with a minimum amount of funds; the minimum deposit amount is unlimited, meaning it is practically zero.
A distinctive feature of these brokers is the provision of high leverage, which allows for a significant increase in trading volumes.
List of brokers - http://time-forex.com/centovye-brokery
Account currency – unlike standard accounts, the currency in the trading terminal on cent forex is cents, while when trading other currencies, it is euro cents or kopecks.
Micro lot is the main highlight of this type of trading, usually a standard lot is divided by 100, resulting in a minimum transaction volume of 0.01, and sometimes even 0.001 of a standard lot.
This means the minimum trade can be as small as 100 units of the base currency. This is quite convenient if your primary goal is training rather than profit.
Micro point – depending on the volume of transactions, the cost of one point is significantly reduced; when opening an order with a volume of 1 micro lot, it is only 1000 units of the base currency.
As a result, you can test how well your strategy works without risking large sums of money.
How much can you earn using a cent account?
There's a misconception that you can't make money trading cent Forex. In reality, it all depends on the strategy you use, and of course, the amount of funds in your account.
I managed to increase my deposit from $10 to $17, and my friend from $10 to $30, within a few hours.
This means you can easily increase your deposit several times in a day, and here the simple law of arithmetic progression comes into play.
Assuming that $10 in a day turns into $30, $90 in two days, and $180 in three days, you can turn your initial sum into $1,620 in a week. Clearly, this requires a lot of luck and good trading skills.
The size of the leverage and the speed of the trend movement play an important role here.
To make a profit, use leverage of 1:200 or 1:500. This allows you to open trades of several micro lots and earn 0.30-0.50 cents per pip, even with just $10. Increasing the leverage will increase your profit accordingly.
You can make money with low leverage by trading highly volatile cryptocurrencies; these assets can change their value significantly in just a couple of hours - https://time-forex.com/kriptovaluty
Cent Account Trading Strategy
It's clear that you'll only be able to make money over short periods of time using a scalping strategy, as even a small correction can wipe out your deposit.
An order is opened in the direction of the main trend on the next price movement after a pullback. The trading timeframe is M1. The Stochastic indicator can be used as an auxiliary tool.
Often, experiments are conducted on micro accounts with such a highly profitable strategy as deposit acceleration - http://time-forex.com/taktik/razgon-depozita .
This type of account is also ideal for testing robotic advisors, as these scripts do not always show objective results on demo accounts.
