Forex market has attracted many individuals from all over the world. Irrespective of nature of the occupation, you can join forex market to earn a profit. Forex market provides handsome returns if you are able to do successful trades. Do you have a forex account? If no, then you should reach a reliable broker and tell your desire. Some criteria should be met before choosing a forex broker. To overcome the dilemma of picking a right broker, you can find information online.
Way to open forex account:
The first step after reaching reliable broker is selecting the type of account. Your broker will offer different account types that might include standard account, mini account, micro account, gold account and others. In this scenario, it is better to choose between forex mini and forex micro account. This is because the investment is quite low as compared to other account types. In addition, it is far better to choose these accounts in your learning stage.
To restrict the limit of deposit in forex account, micro account only needs to put up to $1,000 capital in order to trade. You should learn how to trade with great enthusiasm and prepare yourself ready for next level of performances. With the available fund in your account, you can do trades on a micro lot for different currency pairs.
On the other hand, you should know that investors can make a trade on more than one micro lot at a time. This means you can increase your level of profit with every successful trade in a considerable amount with a number of micro lots.
Have you heard about forex leverage? Leverage can provide an increasing amount of profit. Traders need to understand leverage in detail to take its advantage.
Forex micro account leverage:
In trading, leverage simply refers to increase your investment by using borrowed money. Where to go to borrow money, right? Traders can directly reach to brokers and ask for leverage. Reliable brokers will credit that amount onto your account. You can start your trade after a successful agreement of the same with a minimum margin level. You are actually borrowing money but, you will get a considerable profit. How?
For example, broker always asks at least 2% of minimum margin. This suggests that you should invest 2% of the total borrowing amount to open a position. After you deposit the amount, the trader will credit the rest percentage of the capital required. Suppose 2% margin is equivalent to 5 : 1 leverage ratio. In this perspective, if you have $100 capital in the account, then you can trade up to $5,000. If you gain after successful placement of trade, then you will get a double amount. Inversely, if you lose due to certain reasons, then it will wipe out all your traded money from the account.
Forex micro account traders, it will be better to get experienced before looking for forex micro account leverage. This will restrict individuals from significant losses because of misplacement of trades.