Anyone with an aptitude for numbers and an attitude to get maximum can try a hand in forex trading. And the first hurdle they have to overcome is to open a forex live account. Opening just another account among the many opened every day is easy. But here is the catch.
“Where you start is not far from where you finish.”
So, where do you start?
Forex trading live account:
Everyone needs this to start up, to make their first trade. As I said before, anyone with a minimal amount of cash in their pockets can start a forex live account. But there are various parameters to a live account. And although there are numerous companies which provide for such live accounts, - the parameters provided in them are more often than not varied. Parameters? Yes, parameters; viz.-
- Balance- The amount of money or base currency the trader can or will have to invest into the account to start trading. The more you have, the more you can make. The more you have, the more you can lose too.
- Forex Lot Size- Lot Size refers to the number of base currency units contained in the account. For example, a lot size of 10,000 means the lot has an amount equivalent to 10,000 of the base currency of the trade. There are three specific universally recognized lot structures or types, - Standard, Mini, and Micro lots which have 100,000, 10,000 and 1000 units of the base currency within them.
- Forex Pairs- Forex pairs refer to the pairs of currency quotes which the forex trading live account caters to. Currency quote, for the sake of the explanation, are pairs of different currencies with their value coefficient attached to them, such as EUR/USD = 1.56. Often the number of pairs which an account caters to is in terms of the lot size of the account.
- Risk Features- Such features are available primarily in smaller accounts or those of beginners. These accounts have a ‘Guaranteed Limited Risk’ feature, i.e., they have a built-in failsafe which makes sure they do not lose more than what they invest.
A forex trade live account more specifically refers to online accounts which the trader mostly oversees and handles himself/herself.
Is a forex trading free live account safe?
Forex trading runs on an online trading platform. Daily turnovers nowadays often touch the $3 trillion mark. So obviously it is safe. But most of the trade is made by experts. What about the beginner or the newbies? Just follow these simple instructions:
- Go for trusted companies. Ask around. Search databases.
- Start small. Go for long-run profit. ($1 start-up accounts can also be availed nowadays.)
- Ask your trader or representative (if you have one) whenever and whatever you want to know regarding your forex live account. Ask him/her for an explanation regarding a trade to which your trader is bound to provide an explanation.
- Do not invest all you have, no matter how lucrative the proposition might sound, into a trade.
There is no offensive in opening a forex trading free live account. For any budding trader, opening an account is the first step, and it should be taken cautiously.
“Luck favors the bold.”
Be bold, not rash but just bold. Read up. Open a forex live account and start earning.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.