Know that the size of the contract is determined by the value of the point.As we stated when we bought 1000 euros on the value of one point = 10 cents.But when we bought 100.000 euro the value of one point = $ 10.
We said that the majority of companies dealing contracts is equal to the size of single lot where the equivalent of 100.000 units of the base currency.As we have stated, in a company where Lout = 100.000 per unit of base currency the value of one point:One point worth of euros = $ 10.One point worth of the pound sterling = $ 10.The value of one point to Lin = $ 8.
The value of one point for the Swiss franc = 6 $.If you decide to deal with a brokerage firm on the basis of size equivalent to a single lot when you open Mazkrnah This company has what is called Standard account.An account which is a single lot = 100.000 units of the base currency and thus the point value of each currency as mentioned above.When you buy a lot of requests from the euro will buy 100.000 euro, if requested purchase 2 euros will buy a lot of 200.000 euros and vice versa for sale.If asked to buy a lot of yen yen will buy the equivalent of $ 100,000 depending on the price you buy it.And such an account be worth one point for each currency as we mentioned earlier.As seen from the above examples, the buy and sell the currency ahead 50 points only will you profit = $ 500, this is the one traded Plaut But Lott traded B-2 would more than double profit to $ 1000 .. And so on.Stalmha of the facts that once you start monitoring the currency exchange rates change continuously at a daily rate ranges from 80 to 300 points per day, up or down.Ie if you were able to trade Plaut and one each on points difference of 50 points per day will achieve a profit equivalent to $ 500 or slightly less depending on the currency traded by ..But this is that ratified your expectations ..But if your expectations have not ratified this could be a daily loss of you ..!!The Company does not share your profit or loss ..!!And we'll talk in detail later risk for the forex market.And we want you to understand now is that the normal account, which is equal to the value of one point as we have mentioned above may be very profitable, yes, but it may be the cause of heavy losses as well.If we assume that you have opened an account the amount of $ 2000 and started the process and lost by 50 points, meaning that you will lose the $ 500 deducted from your account, you are in the process of any one lost 25% of your capital in which they operate.This is very dangerous, because of the expected one, especially at the outset to lose several deals in succession, it reiterates the previous scenario means that you and after your loss of the four transactions only will lose the full amount that opened the account will not be able to trade only by adding the amount of new ..!!These considerations are very important and the nature of currency trading and risk-taking has been a solution to this problem.Provide quite a lot of brokerage firms so-called Mini account.Before you open an account with the brokerage firm will choose the type of account opened by whether it was a regular account or a mini account.Since the mini-account equal to one tenth in the mostly normal accountWhat does that mean?Account the average contract size = 100.000 units of the base currency, ie, Lout = 100.000 per unit.In the mini account, the contract size = 10.000 units of the base currency, ie, Lout = 10.000 per unit.When you request to buy 1 lot of the euro in mini-account will be buying € 10.000 as well as for the pound, and when required to purchase 1 lot will be purchased yen yen equivalent to $ 10,000 depending on the current price as well as for the Swiss.The small size of the contract in the calculation of the value of the Mini will make the point less than ten times.And therefore will be the value of the point to the expense of small single lot where = 10.000 units as follows:The value of one point for the euro = $ 1.Point value per pound = $ 1.The value of one point of the yen = $ 0.80, or 80 cents.The value of one point of the franc = $ 0.60 or 60 cents.This is true in most of the companies now but may differ in some other companies.Is no different profit and loss account in the account for the Mini in the normal account except that the value of the point vary.Take the examples assuming we are dealing with a company the value of one point for each currency as we mentioned a while ago:Example 1Let's say you bought 2 at a lot of Yen USD / JPY = 125.23Then I sold at USD / JPY = 124.60Vahsb profit or loss in a mini account.Answer:First calculate the difference in points of the equation for Palin.Difference points = ((sale price - purchase price) * 100) * -1
= ((124.60 - 125.23) * 100) * -1 = 63 points profit (because the resulting positive).Now count the actual profit:
Profit or loss = number of contracts (Lott) * * the value of the point spread point.
= 2 * 63 * 80. = $ 100.8As you can see has won in this deal = $ 100.8.
Example 2Suppose you sold three of the pound at a lot of GBP / USD = 1.5282Then purchased at GBP / USD = 1.5332Vahsb profit or loss in a mini account.Answer:First calculate the difference in points of the equation for pound.Difference points = (sale price - purchase price) * 10.000
= (1.5282 - 1.5332) * 10000 = - 50 point loss (because the resulting negative)Now count the actual loss:Profit or loss = number of contracts (Lott) * * the value of the point spread point.
= 3 * 50 - * 1 = 150 $ -Fajsartna in this deal $ 150.If you are dealing to the traditional account to deposit $ 1500.You must understand now the main interest of the mini-account.Yes ... Reduce the risks.Valhassab Mini gives you a good profit if ratified expectations, but your loss that has not ratified the expectations will remain limited and will be able to continue and to make up for lost.The account in the ratified normal expectations you'll be able easily to obtain huge profits, but that has not ratified Fajsartk your expectations will be heavy no doubt.So it is essential to the fullest extent that the actual Atbdo trading the forex market account normal .. They need to start mini account first, so has the experience and skill and adequate to assure you that the process results in a mini account the safety of your style and sincerity of your expectations ..Then - only then - you can proceed to a normal trading account.Important NoteBeginning in 2004, the percentage multiplier to the brokerage firms of America 100 times any of 100:1 and not 200 times as it was before and that based on the new regulations of the National Futures Association NFA of the U.S. governmentWhich means that the margin of the user who will be deducted for each lot in the regular account is $ 1000 and for each lot in the mini-account $ 100This only applies to companies of American mediation only
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