Whether you are new to trading or an experienced trader, Forex Mini trading can offer a benefit to both. As a new trader you can get hands-on exposure without risking lots of money and as a veteran trader you can test out new theories and strategies to then use on your more lucrative investments.
Forex (short for Foreign Exchange) mini trading is essentially the same as regular Forex Trading; the only difference being, that the investor can put in a small amount of money, as low as $100.00. This makes trading much more accessible and less of a risk. By trading smaller amounts you will be able to get hands-on experience to Forex Trading but not have to feel the pressure and stress of potentially losing thousands of dollars. The risk is the same but the amount you could lose is not as catastrophic to your bank account.
It is interesting because research has shown that because the risk is greatly lessoned in Forex Mini Trading, the return is often much more; when the risk is low, confidence is higher. A common way people lose money in Forex Trading is when the trader stays with a prospect hoping it will turn around and do better, by first investing in Mini Trading you get a real-time training ground that will help you learn strategies and ways to better invest in the future. Perhaps you use trading as a way to exercise your desire for excitement, rather than a way to supplement income. Forex Mini Trading is a great way to get the thrill of risk and gamble without the compounded stress of losing lots of money.
Another great way to get hands-on experience is opening up a virtual account. You can then work with a Forex Mini Trading account and use virtual money to invest and play around with. This will allow you to really learn the process before investing your real money and allows you to take bigger risks and test out ideas you may have on how to invest. Some agencies will let you open multiple mini accounts where you can start trading globally without any restrictions. By having multiple Forex Mini accounts globally, you will be working a few different orders with varying currencies.
Calculations are much easier to grasp and learn on Forex Mini trading accounts as well. In many of the currency pairs like USD/EUR the “tick” value is equal to one dollar loss or gain in the exchange rate.
As you become an expert in Forex Mini trading and begin to feel confident in your knowledge and strategies, it may be time to up your risk and hedge more money. There is no maximum amount you can invest in Forex Mini Accounts, so you can either continue with that account or go over to a traditional Forex Trading account. Either way, as a knowledgeable and trained trader, you will be able to assess good verses poor investments and get bigger returns. Forex Mini trading hones risk management skills with limited risk and novices and experts alike can better their skills as overall traders.