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Oct 7, 2009

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FOREX question: What is the advantage of having an account of "standard" over the account of a 'mini'?

this corridor 200:1 offered for minis, but 100:1 for the rules. I do not think they really going to try more than 50:1, but w / e, so is the lot size of 100,000 account and advantage because you do not have to get busy bas to order? There must be another reason signoficant to differentiate between the two accounts. Perhaps the spread improvement? Maybe insterest rates are better? 4XTrader ... Can I work for you?

Even though trade fx, the lever type always puzzled me. Leverage margin determines how much you need to put up. For example, an STD. account, 1 lot = $ 100.00, so you 100:1 leverage on an STD. account: $ 1,000 margin per batch. In a mini lot is $ 10,000, to take advantage of 200:1 is $ 50 per lot. Let's break it. Say you have an STD $ 100,000. account with a leverage of 100:1. To say, as a rule only committed 5% of Acct. capital to a business. Thus, a standard for $ 100k. Acct. want to engage in Most of the $ 5000. At 100:1 leverage (or $ 1,000 per lot), which is 5 lots that can trade. In an STD. Acct. 1 pip = $ 10, so a movement has 50 Pip 50 pips x $ 10/pip x 5 = $ 2,500 lots or 50% return on trade. In a mini account, say, $ 10k, a commitment of 5% would be $ 500. With a leverage of 200:1 (or $ 50 per lot) can range from 10 lots. In a mini account 1 pip = $ 1, so that a movement is 50 Pip 50 pips x $ 1 per pip x 10 lots = $ 500 or a return of 100% in trade. Although the $ $ $ of profit is lower ($ 2500 std. $ 500 vs mini), the rate of return is higher (50% of STDs. Vs 100 mini%). Thus, In short, the rate of return is higher. As you recall $ 10/Pip in an STD. 1/Pip or $ in a mini only applies to a currency pair that the U.S. dollar is in and only in the event that the USD is the quote currency, as the USD / GBP, EUR / USD, etc. (The first currency listed in the pair is the base currency and the second is the quote currency). When the dollar is the base currency, the pip value of the dollar based on exchange rates. Take another example. between 11/17 and 12 / 1, the GBP / USD moved 928 pips. Thus are going to say who bought the Cable (GBP) using the old account size and leverage to commit 5% of the capital account for trade. In the ETS. account, 5% is $ 5000 with $ 1000 would give you much room for 5 lots. At 928 pips, you would make $ 46,400 or 828% return on margin (46.4% increase in equity net account). In a mini account, it's $ 500 with $ 50 per lot or 10 lots margin. PIP move to 928 is $ 9280, or 1756% return on margin (92.8% increase in equity of the account). In other words, the dollar returns were higher in the ETS. account, but the percentage becomes higher in the mini account. But care, greater leverage works both ways. Hope this helps.

Nine O'Clock Emil Boc Prime Minister and his Bulgarian counterpart Boyko Borissov, on Friday opened the Turnu Magurele Nicopol ferry boat service connecting Romania and Bulgaria.

The Psychology of the Foreign Exchange Market (Wiley Trading) The Psychology of the Foreign Exchange Market (Wiley Trading)
List Price: $95.00
Sale Price: $51.61
Used From: $36.00

This book demystifies the foreign exchange market by focusing on the people who comprise it.  Drawing on the expertise of the very professionals whose decisions help shape the market, Thomas Oberlechner describes the highly interdependent relationship between financial decision makers and news providers, showing that the assumption that the foreign exchange market is purely economic and rational has to be replaced by a more complex market psychology.


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