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Thread: trading with micro

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    Default trading with micro

    trader can start trading on standard account with 25usd and therefore with 500:1 leverage, the minimum for micro account is 1usd, but how large the leverage has to be then? still 500:1 or less? thank you in advance to explainers

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    Quote Originally Posted by scheinwerfer View Post
    trader can start trading on standard account with 25usd and therefore with 500:1 leverage, the minimum for micro account is 1usd, but how large the leverage has to be then? still 500:1 or less? thank you in advance to explainers
    hello. You may use the following formula to count how much margin do you need for trade.

    (Price x volume) / leverage=$Margin

    For example....
    0.1 lots gbp/usd at 1:200 leverage
    (2.0427x10,000)/200=$102.14 (for standard account). For micro volume is gonna be different. For example 0.1 micro lots gbp/usd at 1:200 leverage
    (2.0427x100)/200=$1.021

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    Default

    Quote Originally Posted by Nadya View Post
    hello. You may use the following formula to count how much margin do you need for trade.

    (Price x volume) / leverage=$Margin

    For example....
    0.1 lots gbp/usd at 1:200 leverage
    (2.0427x10,000)/200=$102.14 (for standard account). For micro volume is gonna be different. For example 0.1 micro lots gbp/usd at 1:200 leverage
    (2.0427x100)/200=$1.021

    it all make sense except 0.1 standard lot USDJPY:
    (90x10,000)/500=$1800
    for micro it is then $18, right?
    but that could not be, it should be $18 for standard, shouldn't it?

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    Quote Originally Posted by scheinwerfer View Post
    it all make sense except 0.1 standard lot USDJPY:
    (90x10,000)/500=$1800
    for micro it is then $18, right?
    but that could not be, it should be $18 for standard, shouldn't it?
    Japanese Yen pairs are different. use the following..

    (Pricex100)/leverage=$Margin

    For example...
    0.1 lots of gbp/jpy at 1:100 leverage

    (227.18x100)/100=$227.18

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    Lightbulb

    You do a slightly different calculation for JPY pairs, because they have only 2 decimal points. Thats why when you calculate for 1 STANDARD LOT, you use 100, not 10,000.
    Example:USD/JPY @ 91.74

    (91.74*100)/500=18$ (this is for a standard account)
    Now, if you need a calculation for 0.1 MICRO lot (which is times 100 smaller than standard) you use 1 for volume, which makes it 18 CENTS.
    (91.74*1)/500=0.18

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    Already answered, lol, thanx Nadya

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    ceestech
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    the micro lot is just to try out your skills to me if you really need the profits you go for the other account.

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    trading with micro lots is the best step every newbie needs after learning with demo. Though even those more than newbie too can use it based on their capital

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    ceestech
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    I love the micro lot because even when you loosing the pains aren't that much compared to the standard account because your investment is small.

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    I usually use micro account to test new strategies. I don't prefer back testing. I think that to find a good strategies we must test it on real conditions.

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    Micro lots or micro accounts are not for testing strategies. Demo accounts are more suitable for such activities

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    it is using the exercise with micro account will feel what it's like trading a real account because of course use a demo account with real clearly different but better if it was still new to the forex business then you should use a demo account first, or using the strategy tester for training strategies that will be used.

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    Testing strategies on micro accounts will still be more like putting up your capital at risk. It is better to test on demo and perfect it with micro

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    When a trader is ready to trade in real account he must start to trade with small investments and micro account is the best for the same and they should open their account in micro account and start trading in small lot size and try to grow their account by making consistent profits .

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    I feel in micro accounts ,they are not going to provide less Lot size facilities ..max cases its starting from .10 lot.

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