A FOREX mini is simple a mini forex account specially designed for those new to online forex trading and also for those with small capitals of investment. Investors with less than US$5000 often prefer mini accounts. This amount can vary from broker to broker. Usually a mini forex account is called a e-mini and can be opened with US$ 500. Broking firms provide practice or demo accounts for their customers to get used to the excitement of forex trading without any cost involved inorder to test their trading skills and analyzing techniques.
A mini forex account can be opened at any time of the year. The trading size is small when compared to a regular trading account and is normally one tenth. Brokers do advice smaller lot sizes to reduce the risk associated with forex trading. Margins in trading are generally not less than 1% of the base currency, but brokers offer lower margins of US$ 50 per lot on some minis. Brokers calculate minis manually sometimes while some have softwares which calculate the margins automatically.
The main advantages a mini forex account provides is that with $500, a trader can withstand a huge swing in the market than a trader with a regular account. A FOREX mini helps immensely to spread the risks for a regular trader. A regular trader sometimes falls for a situation where margin call occurs, in which the balance falls below the minimum balance required. So to avoid this, many regular traders now open mini accounts to minimize their overall risk. Traders can compare mini accounts of different brokers and choose the best out of them. A mini account allows traders to focus on technical analysis rather than profit so that traders know when to exit and also make profit. Minis offer smaller contract size and also lower margin requirements.
Trading account being small, Orders by the client are placed within seconds. Brokers do take some amount of commission, but usually provide zero commission facility to woo their customers. Traders have to be careful with the kind of software used by the broking companies and have to see if they can provide live charts, real-time prices of all major currencies and others. Traders need to choose a base currency for their accounts and are generally USD or Euros. Traders can do trading 24 hours a day. Firms provide different kinds of tools to achieve success in mini forex trading.
FOREX research is also critical for brokerage firms. Research is extensively done to provide clients with updates and news, technical analysis and trust-worthy information. Intraday market news provides fresh news about the present market situation, events happening around the world, actions of financial buys and sells, political and economic issues in a major market which impact the currency rates and there by the forex trading. FOREX research is done by experienced and senior members of the firm and all the information is updated 20 times an hour. There are some issues which do not vary much in a day, so daily, weekly and even monthly research is done to keep abreast of the happenings for traders.
FOREX quotes are charts
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