How Much Money Do You Need To Start Trading F

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    The question of How much money do you need to start trading forex? should not be confused with How much money should you trade forex with? People tend to think the two queries are the same thing but the truth is there is a load of difference between these two.

    While the first question tends to refer more to the amount of money you needin order to open a trading account with a forex broker and start trading, the second question refers more to the ideal amount of trading capital you need to deposit into the trading account so you can trade forex comfortably. Take note that the first one asks for the minimum required capital while the second asks for the maximum amount of desirable capital.

    Confused yet? Let me expound on this point a bit further so you will be quite clear about the marked differences between the two questions.

    The answer for the first question is quite specific and ranges from zero dollars to $1,000 depending on who your broker is. Thats right, there are indeed brokers who really offer zero deposit accounts where you need not put in a single cent to be able to start trading. In fact, these brokers even toss in $25 to $50 of free money into the account. There is a catch here though you are required to make a specific volume of trades before you can withdraw funds from the account. Unfortunately, the traders almost always end up with zero balance by the time they complete the qualifying number of trades prior to fund withdrawals.

    There are brokers who offer micro accounts with which you can open your own trading account with as little as $10. You will only be able to trade micro lots with these accounts though. One micro lot is equivalent to a mere 10% of a standard lot (or 0.01 of 100,000). On top of the micro accounts are the standard trading accounts where the minimum initial deposit requirement starts at $200.

    For the second question, there is really no fast and fixed answer to it. In the first place, the desirable amount of trading capital one puts in into a trading account depends a lot on his appetite for taking risks. Which brings us to an important point e.g. the money you should depositin a trading accountshould only be risk capital or

    Ideally, the amount of trading capital you should deposit into an account must be at least three to four times bigger than the broker-required margin to trade one lot. This should give you sufficient buffer to weather adverse price reactions and buy you enough time to make the necessary adjustments in your losing positions. The bottom line is the more money you have in your trading account, the farther you are from the risk of getting your positions prematurely cut off during extremely volatile sessions.

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    Leveragedin my opinion, means you can start trading even with low initial investments. You don't need to be rich in order to start investing.

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    My friend, it`s depending on the broker`s conditions. For example, I started to trade 200$ only. If you want to know more, you can read this article, about IC Markets Minimum Deposit :

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