Using Mini Accounts
In This Chapter
• Taking tiny steps
• Borrowing too heavily
• Understanding your risk
• Recognizing your potential losses
When just getting started with forex, many people prefer to start slowly by taking tiny steps. You can do that through a mini account. But be careful. Many mini accounts allow much higher leverage. You can lose your entire deposit in a matter of hours.
In this chapter, we explain how mini accounts work and the dangers of leveraging too much.
A standard lot in forex is 100,000 units of the base currency of a currency pair (you can find out more about base currency in Chapter 3). So if you buy one standard lot of EUR/USD with a price of $1.2155, you would control $121,550 worth ...