Why you need to start Forex trading in cent account if your investment less than 1000?


The simple answer is for good  Money Management, you need to make sure your investment is big enough. For a small account, money management is so tuff. If you have not enough money (Minimum 1000usd), it will be better to trade cent account. Your question is why? I give you one example.

If you invest 100 USD or equivalent,

In a cent account, it will be 100*100=10000cent.

 

Suppose you assume USD/JPY increase more. At that time, it was  104.10

So, you open trade on 104.10 with lot size 0.10

Then, USD/JPY go to 103.70 due to any fundamental bad news. You can open a new lot size 0.4

USD/JPY go to 103.30, you can open lot size 0.6. you can open a new lot size 0.6

Then, USD/JPY go to 103.70. You can close all of your trade with profit.

 

You just use a total of 1 lot in cent account, but almost 85%case you can gain in this way with low-level risk by following this method.

But what happen in the standard account, you have 100 USD.

In the same way, you think USD/JPY increase more. Now, it is on 104.10

So, you open trade on 104.10 with lot size 0.01

Then, USD/JPY go to 103.70 due to any bad news. You can open a new lot size 0.02 with Risk.

Usd/jpy goes more down to  103.30, you can open a new lot size 0.03

Then, USD/JPY go to 103.70. You can close all of your trade with profit with high risk.

There is a huge opportunity to lose all money in your account if USD/Jpy price more down.

For safe forex trading, you should use a cent account if you invest less than 1000.

You must remember 2 points.

One point is today is not your last day to take profit.

Another point is don’t risk more, profit will become gradually.

Location: Bangladesh

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