1000 lots forex is one of the top demands by traders in the market today. This demand has been discovered to be common particularly among new trader, most of which do not have a large startup capital. To this end, a majority of brokers offer mini accounts and macro accounts, which requires less than the standard account.
A FOREX TRADING ACCOUNT
Before a trader enters the market, there is the need for him or her to sign up with a broker. The broker, after the process of registration, offers the trader a platform to trade with, in the form of an account. There are different types of accounts which include the following
- A mini account
- A micro account
- Standard account
WHAT IS A MINI FOREX ACCOUNT?
A mini account is an account type that allows a trader to enter a position with just 10% of the standard lot unit of 100,000 units. This means that the trader enters the market with 10,000 units but is granted access to trade a position of 100,000 base units. With a mini fx account, a trader can trade with the smaller amount of capital and enjoy a high leverage (depending on the broker). It is important to note that the advantages of using a mini account (plus a leverage of 90% depending on the broker) are just as much as the disadvantages; it is profitable as it is risky.
WHAT IS A MICRO ACCOUNT?
A micro account is an account with which a trader can carry out a transaction made of contracts for 1000 units or 1000 lots. Instead of opening a trade of the standard 100,000 lots, a trader can open a micro account which is synonymous with 1000 lots. With this type of account, a trader can refine his or her trading strategy with smaller deposits before moving to larger account size. This is the smallest of all the three major types of account as it requires a minimal amount of startup capital. It is not a bad place for the traders to start from. It offers a trader the opportunity to learn on a not-so-complex level while risking a minimal amount for startup.
WHAT IS A STANDARD ACCOUNT?
A standard account is the most common of all types of account. It is a trading account that offers a trader access to standard lots of currency of 100,000 base units. The good thing about the standard account in caparison with a mini and micro account is that brokers tend to offer more perks and better services to traders operating with standard accounts. Unlike the other types of account, it is expected that traders deposit a substantial amount of money upfront before trading.