Mini foreign exchange dealing is a good way for people to join the foreign exchange market without a lot of money. It is also good for those people that are new with dealing in the foreign exchange market. Having a mini foreign exchange dealing account will allow new dealers to have a gripped on the market without risking a lot of money that you would be required to spend in the foreign exchange market.
Usually, participating in the trading that is happening in the foreign exchange market is the exclusive club for banking and financial groups but with the use of the World Wide Web and the option to trade on the market with the Internet. Compared with other financial markets, foreign exchange process around trillions of dollars every day. You can also trade in the market anytime you wish to because it is always open in any part of the world and it operates around eight hours per day.
In mini foreign exchange dealing, you also have the opportunity to experience on how it is to handle a normal foreign exchange account like the software, forex charts and graphs that it offers. It will also help you to have a clear view of the market without thinking on what will happen on your money. Trading with mini foreign exchange is accomplished in small sizes of 10,000 units, which is just only one tenth of the normal forex account.
Registering for a mini foreign exchange account will require you to pay around one hundred dollars to three hundred dollars. A singe pip is worth $1 dollar for Euros/U.S. dollars and Pound Sterling/U.S. dollar. Participating in mini foreign exchange dealing means that you will be participating in marginal dealing.
It also means that you intend to leverage in your dealing, getting money to place a deal without having to pay the amount that is needed for one lot. The cash that you place in your pocket is a marginal lot. For a mini-foreign exchange account, the marginal lot for ten thousand dollars is fifty-dollars or two hundred to one leverage.
When you sign-up for a mini-foreign exchange with $250 dollars, you are dealing 5 minimum lots. You may be wary that a mini-foreign exchange account will need a big leverage, which is two hundred to one. Day dealing on stocks by using leverage is four is to one with a one day of dealing. So this is not usually a good proposition to undertake on a big leverage in your forex investment. But this is the usual activity in mini-foreign exchange dealer and you are not using a lot of leverage. When you choose mini foreign exchange dealing, you are only required to spend two hundred fifty dollars but deal ten thousand dollars worth of money because of the big leverage.
In mini foreign exchange dealing, the deposit needed for ten thousand dollars is only fifty dollars. This is a leverage of two hundred to one (ten thousand dollars/fifty=two hundred). So with your mini forex account, the deposit needed on per ten thousand lot is fifty-two dollars. This will have a leverage of two hundred to one (ten thousand dollars/fifty=two hundred).
With your initial investment of two hundred fifty dollars, you can deal around five mini lots with five hundred dollars a maximum of ten, with one thousand dollars a maximum of twenty.