FOREX question: What is the advantage of having a 'standard' account over a 'mini' account? - what is the advantage of having a standard anatomical position
This broker offers 200:1 for the minis, but 100:1 for the rules.
I do not think is really more than 50:1 face, but w / e, is when the lot size of 100,000 accounts, and the advantage because you do not get held down in order? There must be another reason signoficant distinguish between the two accounts.
Maybe the spread is better?
Perhaps insterest prices are the best?
Sunday, February 14, 2010
What Is The Advantage Of Having A Standard Anatomical Position FOREX Question: What Is The Advantage Of Having A 'standard' Account Over A 'mini' Account?
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Although in the Forex, the kind of leverage has always fascinated me. Leverage margin determines how you need to put into effect. For example, an STD. Bill, 1 lot = $ 100.00, the standard 100:1 leverage. Account: $ 1,000 margin per batch. In many mini is $ 10,000, entitled 200:1 shall be $ 50 per lot.
Let's break it. Suppose you have an STD $ 100,000. Account with 100:1 leverage. To say, as a rule, only 5% of the loans from ACCT. Capital for a business. Thus, a standard for $ 100K. Account no. Most want to commit to $ 5000. At 100:1 leverage (or $ 1,000 per lot), the 5 lots, which is the trade. In an STD. Account no. 1 pip = $ 10, if an application for 50 x 50 pips Pip 10/pip $ 5 = $ 2,500 x lots which has a 50% return on trade.
In a mini account, for example, $ 10k, 5% commissiontion would be € 500. With a leverage of 200:1 (or $ 50 per lot) can be from 10 games. In a mini account, 1 pip = $ 1, then 50 pips movement of 50 pips x $ 1 per pip x 10 seats = $ 500 or a 100% return on trade. Although the $ $ $ profit is lower ($ 2500 std. $ 500 mini-VS), the yield is higher (50% STD. Vs Mini 100%). So, in summary, the yield is higher. As you recall $ 10/Pip in a STD. 1/Pip dollars or in a mini covers only two currencies that the dollar is that when the dollar is the currency of trade as / GBP, USD, EUR / USD, etc. (The first currency in the pair's list the base currency, the second is) the quote currency. If the dollar is the base currency, the dollar-PIP-based exchange rates.
Take another example. between 11/17 and 12 / 1, GBP / USD moved 928 pips. To say that one has to pay the cable (£) with sizes of the previous account and take advantage of 5% of capital for trading. In the EU ETS. Accounting for 5% $ 5,000 to $ 1,000 would give a lot of space for 5 batches. , At 928 pips, you had $ 46,400 or 828% of earnings margin () 46.4% increase in capital account. In a mini account is $ 500 to $ 50 per lot or space for 10 lots. PIP is moving to 928 $ 9280 or 1756% return on-) margin (92.8% increase in capital account. In other words, the dollar higher yields in the EU ETS. count, but the rate of return is higher in the mini account.
But beware, the more use more work in both directions. Hope this helps.
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