Micro Account

Jobe2433

Recruit
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ok so this might be a stupid question. But, if I have a micro account and I deposit more money will it gain or lose more? Or do you have to go into a bigger sized account? Hope this makes since.
THanks
 
Ok...it makes sense what you're asking, but it's clear that you're confusing two things.

To answer first I'll point out that you have to talk to your broker to make sure they don't have some BS rule where after you have a certain amount of cash that you automatically are forced to trade bigger lots. That's probably not the case though.

As for the confusion, you gain and lose more based on the lot size and the number of lots you use. If anything it's to your advantage to have more money in your brokerage account, for safety, but more money in your account doesn't mean you are risking more per trade.. More money in your account means that you can risk more per trade, but that doesn't mean it's a good idea.
The lot sizes are nano, micro, mini, and standard. Gains per pip on EUR/USD are $0.01, $0.10, $1, and $10 respectively for each lot.

So if your broker doesn't monkey with your lot size, the amount of money in your account has nothing to do with the risk and profit.
 
Lot size

I loved reading that:
Let’s re-trace the conversation at a different table in the bar drinking beer.
https://www.forexpeacearmy.com/fore.../8190-how-many-lots-do-you-use.html#post27241
Tip the waitress??? drop a dollar???
“How much do you tip”???? Waitress or Broker, Waitress or Broker
WERE YOU SERVED???

The Question is “How much beer did you “”BUY/SELL”“
% percentage vs. volume trade???
% of Account vs. risk factor???
Account divided by risk equals units risked???
Money managed equals percent of account risk per divisional amount of account???
margin, %margin, “Margin hit the button or not”...... “MARGIN die with it or escape”
Margin..... run away...
I cook good rice, everyday.... no fast stuff... real rice (every grain of rice the drop of sweat from those, that harvested)
(what is a margin and why does it take “ALL MY Money")
Good Question???

Recon/research/reconnaissance (The people that can do it might not be able to spell it)

H*ll, I’m not a “Senior” I just got promoted because, ... I out-lived you.

{Daily - Practice..... Daily - Practice....}
 
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ok so this might be a stupid question. But, if I have a micro account and I deposit more money will it gain or lose more? Or do you have to go into a bigger sized account? Hope this makes since.
THanks

You may want to look into FXCM. They offer clients the smallest start up account which is a micro one. You can trade fractions of mini lots which makes you lose or gain peanuts. It is great for getting you started with risk management also.

I started out with Refco many years ago with a mini account and was nervous as hell when live trading 1 mini lot. You got to get your feet wet though. I now trade several standard lots per transaction. It is amazing how your psychology changes over time with the amount of money you are prepared to lose (and gain).

Having more money in your micro account will not really make much of a difference. I have not come across one broker that pays you interest on your forex account balance. I know FXCM has a cut off point whereby if you have a certain balance in your micro account you have to switch over to a mini one effectively forcing you to make larger trades. I encourage you to get to this stage for your personal growth. Hope that helps.
 
Forex Confusion on lot sizes and margins etc.

ok so this might be a stupid question. But, if I have a micro account and I deposit more money will it gain or lose more? Or do you have to go into a bigger sized account? Hope this makes since.
THanks

Hi

I've created this calculator to help with this subject of risk and margins

full lots are 1 micro or fractional lots are .1,.2,.3 etc
Some brokers don't have a fractional lot system and others do.

It's the same thing but they just have a separate platform for trading 1 mini lot which is the same thing a .1 fractional lot.

Anyhow depending on the rules of the broker most have a 1% margin requirement which is at a 100:1 ratio.

Meaning to trade 100,000 US dollars you will put up 1000 to open a position , well in theory anyhow if the base currency is the US

But with the EUR/USD it's a little different so I created this calculator to keep me from loosing my mind over this subject.

See this other post and download my calculator this will give you some visuals on this topic and you can play with it a bit to see how you might trade, and see your sustainable pip loss etc.

https://www.forexpeacearmy.com/forex-forum/general-forex-talk/9295-margin-calculator.html

Hope this helps
 
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