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 that cent Forex has
Cent brokers are companies that allow you to start trading with a minimum amount of funds; the minimum deposit amount is not limited, that is, practically equal to zero.
A distinctive feature of these brokers is the provision of large leverage, which allows you to significantly increase trading volumes.
List of brokers - http://time-forex.com/centovye-brokery
Account currency - unlike standard accounts, the currency in the trading terminal on the cent Forex is cents; when trading other currencies, respectively - euro cents or kopecks.
A micro lot is the main highlight of this type of trading, usually a standard lot is divided by 100, as a result, the minimum transaction volume is 0.01, and sometimes 0.001, of the standard lot.
That is, the minimum transaction can be only 100 units of the base currency. Which is quite convenient if your main goal is not making a profit, but training.
Micro point – depending on the volume of transactions, the cost of one point decreases significantly; 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 check how well the strategy you have developed works without risking large sums of money.
How much can you earn using a cent account?
There is a misconception that you can’t make money working on cent Forex; in fact, it all depends on the strategy you use, and, of course, the amount of funds in your account.
I managed to increase the deposit from 10 dollars to 17, and my friend from 10 to 30, within a few hours.
That is, you can safely increase your deposit several times a day, and here the simple law of arithmetic progression comes into play.
Assuming that 10 dollars per day turns into 30, in two days it’s already 90, and after three days it’s 180, in this way you can turn the initial amount into 1620 dollars in a week. It is clear that this requires a lot of luck and good trading skills.
The size of the leverage and the speed of the trend play an important role here.
To make a profit, you should use a leverage of 1:200 or 1:500, as a result you will be able to open transactions of several micro lots and earn 30-50 cents from one point, even with only 10 dollars at your disposal. If the amount increases, the profit will increase accordingly.
You can make money with low leverage by trading cryptocurrencies with high volatility; such assets can significantly change their value in just a couple of hours - https://time-forex.com/kriptovaluty
Cent account trading strategy
It is clear that you will only have to make money on short time periods using the scalping strategy, since even a small correction can destroy your deposit.
An order is opened in the direction of the main trend on the next price movement after a rollback, time frame for trading M1; the Stochastic indicator can be used as an auxiliary tool.
Often experiments are carried out on micro accounts with such an extremely profitable strategy as accelerating the deposit - http://time-forex.com/taktik/razgon-depozita .
This type of account is also great for testing robot advisors, since on demo accounts these scripts do not always show objective results.