Mini Forex Trading, is it Right For You?

Written by Our Expert Forex Trading Author: Frederick Trachtenburg

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If you are a beginner hoping to gain experience in the world of Forex trading, opening a Mini Forex Account may just work for you. A Mini Forex Account loosely refers to a kind of Forex account that permits trading within a tenth of the usual size which is 100,000 units. When trading in this category, the equivalent of one pip is $1 which is also one-tenth of the standard $10. You can open a Mini Forex Account for trading with a reliable Forex dealer.

The good thing about Mini Forex Trading is that you are able to slowly gain confidence in trading because you don’t have much to lose as compared to standard Forex trading. To trade a full standard lot, you will be using 10 mini-lots, which allows maximum exposure to the trading market for minimal risk of loss.

The common mistake that novice traders commit is holding on to losses in hopes that it will reverse. But most of the time, the loss gets magnified and eventually leads to large amounts of losses. With only $1 pip, you can develop a more disciplined approach and make decisions based on market trends and not on emotions.

As your exposure increases, you can slowly increase the size of the units you’re trading in order to achieve maximum profit. You can start trading with 10,000 units which is standard for Mini Forex Trading and slowly build it up to say, 100,000 or 150,000. This gives you an opportunity to customize your trading strategies for a more sound risk management.

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