Mini FX

The Mini account was designed for those who are new to the FX market. The Mini account trades in smaller contract sizes of 10,000 units, 1/10th the size of the standard account. The smaller trade size gives traders the opportunity to trade live with less overall risk or exposure to the market. In addition, the Mini account allows traders to become familiar with FX Trading, more specifically the quality and reliability of dealing practices and the stability of the Trading Station that you choose.

Develop a Disciplined Trading Strategy

Ask any successful trader and they will tell you that the key to trading success is discipline. Everyone has heard the expression “cut your losses and let your profits run” yet how many traders actually practice this?

Many traders will hold on to losses hoping it will reverse eventually, only to see the loss get progressively larger. These “irrational” trading decisions are based on emotional reactions to fluctuating profits and losses, a common pitfall for new traders.

Losses can AND will occur. A trader's ability to limit his losses is just as important (or even more important) than determining entry points.

Because the pip value on the Mini Account is just $1 per pip, traders can focus on developing a disciplined trading strategy, basing decisions on pip movement and market conditions NOT P/L.

Consider the Following Example: When trading a Mini account, a 30-pip floating loss is approximately $30. That same 30 –pip move against you on the 100K account now becomes a $300 floating loss. By starting with a Mini account- a trader loses only a small amount on every losing transaction making it easier to stick to a disciplined trading strategy. Generating larger losses on the 100K accounts can be detrimental to new traders as the temptation to hold on to the loss is much greater based on the size of the loss.

Start Small. Build Up Confidence

There is NO MAXIMUM trade volume on a Mini account. Although the standard trade size is 10,000 units – you are not limited to trading one lot! For instance, you can trade 10,000 units, 50,000 units or 150,000 units. This means as you become more seasoned and build up confidence you can slowly increase the size of your positions to maximize profits. In fact the trade size of 10,000 units allows for more flexibility in terms of customizing the size of your trade. The ability to customize the size of the trade enables better risk management.

Ideal for Accounts under $10,000

FX Platinum recommends that all traders with account balances less than $10,000 trades a Mini account. This gives you more staying power in the market, and the ability to take advantage of multiple opportunities without over-leveraging your account. If you over-leverage your account you will not give yourself room for error. Even if you are correct on the direction of the market, minor fluctuations can generate a margin call and liquidate a good position.