You know that the size of the contract is determined by the value of the point.
As we mentioned when we bought 1000 euros in the value of one pip = 10 cents.
But when we bought 100,000 euros the value per point = $ 10.
We said that the majority of companies dealing contracts equal-sized croaker per equivalent to 100,000 units of the base currency.
As mentioned in the company per Lot = 100,000 units of the base currency is one point worth:
One point worth of euros = $ 10.
Point value per pound = $ 10.
One point worth Lin = $ 8.
One point worth of the Swiss franc = $ 6.
If you decide to deal with a brokerage firm on the basis of the size of holding the equivalent croaker where Mazkrnah you will open the company's so-called normal account Standard account.
An account that will be one where croaker = 100,000 units of the base currency and thus the point value of each currency, as mentioned above.
When buying Lott requests of the euro will buy 100,000 euros, if asked to buy 2 Lott euros will buy 200,000 euros and vice versa for sale.
If you ordered a lot of yen will be buying yen equivalent to $ 100,000 depending on the price at which it buys.
And such an account be worth one point each currency as we mentioned earlier.
As can be seen from the above examples, the buying and selling of currency just 50 points behind will bring you a profit = $ 500, traded Plaut The one that traded 2 lots will double profit to $ 1,000 .. And so on.
Of facts that Stalmha Once you start monitoring currency rates constantly changing daily rate ranges from 80 to 300 points a day up or down.
If you were able to trade Plaut one every day points 50 points will daily profit equivalent to $ 500 or a little less by currency traded by ..
But this ratified expectations ..
But that has not ratified expectations this could be a daily loss of you!!
The company no profit Charkk no loss!!
And we'll talk in detail later about risk to the forex market.
What we want you to understand now is that the normal account, which is equal to the value of one point, as we have mentioned above may be very profitable Yes, but it may be a cause of heavy losses as well.
If we assume that you have opened an account in the amount of $ 2000 and began the process of losing 50 points, meaning that you will lose the $ 500 will be deducted from your account, ie you and in the process one lost 25% of your capital in which they operate.
This is very dangerous, because it is expected one, especially at the outset to lose several deals in succession, the repeated previous scenario means that you and after your loss to four deals only lose the entire amount, which opened the account will not be able to trade only by adding a new amount ..!!
For this very important considerations and the nature of currency trading characterized by risk, it has been a solution to such a problem.
Provide quite a lot of so-called brokerage firms account mini Mini account.
Before you open an account with a brokerage firm will choose the type of account you Stfathh whether it is a regular account or mini account.
Since the mini account equals mostly ten regular account
What does that mean?
Account the average size of the contract = 100,000 units of the base currency, any meager per unit = 100,000.
In the mini account the size of the contract = 10,000 units of the base currency, meaning that per Lot = 10,000 units.
When requests to buy 1 lot of EUR mini account will buy 10,000 euros, as well as for the LE, and when you ask to buy 1 Lott yen will buy yen, equivalent to $ 10,000 depending on the current price, as well as for the Swiss.
The small size of the contract in a mini account will make the point value less than ten times.
And thus would be the point value for a mini account per croaker where = 10,000 units as follows:
One point worth of euros = $ 1.
One point worth LE = $ 1.
One point worth Lin = .80 $ 80 cents.
One point worth of francs = .60 $ 60 cents.
This is true in most companies now, although it has been different in some other companies.
No different profit and loss account in the mini account with him in the regular account only that different point value.
Take the examples assuming that we are dealing with a company value of one point for each currency as we mentioned a while ago:
Example 1
Then sold it at USD / JPY = 124.60
Vahsb profit Okhsartk in a mini account.
The answer:
I daresay first points of difference equation for Palin.
Spread = ((sale price - purchase price) * 100) * -1
= ((124.60 - 125.23) * 100) * -1 = 63 points profit (because the output credited).
سنحسب now actual profit:
Profit or Loss = number of contracts (Lute) * difference in points * point value.
= 2 * 63 * 80. = $ 100.8
As you can see has won in this deal = $ 100.8.
Example 2
Then I bought at GBP / USD = 1.5332
Vahsb profit or loss in a mini account.
The answer:
I daresay first points of difference equation for the pound.
Spread = (sale price - purchase) * 10.000
= (1.5282 - 1.5332) * 10000 = - 50-point loss (because the output negative)
سنحسب now actual loss:
Profit or Loss = number of contracts (Lute) * difference in points * point value.
= 3 * 50 - * 1 = 150 $ -
Fajsartna in this deal is $ 150.
If you are dealing traditionally account for the lost $ 1,500.
You must be understood now is the main benefit of mini account.
Yes ... Reduce risk.
Valhassab mini gives you a good profit if ratified expectations, but lost that have not ratified expectations will remain limited and will be able to continue and make up for lost time.
In normal account ratified expectations they will be able to have easy access to huge profits, but that has not ratified expectations Fajsartk will no doubt heavy.
Therefore, it is necessary to maximize the Atbdo actual currency market trading account normal .. But must begin mini account first, even possess adequate experience and skill and to confirm to you the practical results in a mini account the safety of your style and sincerity of your expectations ..
Then - only then - can be transmitted to a normal trading account.
In the following table you will see the main difference between a regular account and mini account for most brokerage firms though the difference may vary from one company to another.
Standard account mini account
Lot Size 100,000 units of the base currency 10,000 units of the base currency
Margin user who is 500 $ 50 $
His opponent on each lot
One point worth EUR 10 $ 1 $
One point worth of pounds sterling 10 $ 1 $
One point worth Lin 8 $ 8. $ 80 cents
One point worth of Swiss francs 6.5 $ 65. $ 65 cents
Very Important Note
Starting in 2004, double the rate of the U.S. brokerage firms 100 times 100:1 and not 200 times as it was before and that according to the new regulations of the National Futures Association NFA of the U.S. government
Which means that the margin of the user who will be deducted for each lot in the regular account is $ 1,000 and for each lot in a mini account $ 100
This only applies American mediation Alycherkat only
0 comments:
Post a Comment