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Trade
Cent account
Not much time has passed since then, when opening an account at a Forex broker required at least $ 500. Thus, for most wanting to try their hand in the fields of financial battles was impossible. But the competition between brokers was growing, there were new, not having at that time no weight on the market, no big names, but have the desire to grow. Gradually plank the minimum amount for opening a trading account began to move lower and the competitors had nothing like to follow the trend.
But in any case the minimum trading lot is 0.01 (1,000 base currency) that is not allowed to reduce the minimum value of the sum of the Deposit, which was necessary for a Deposit when opening transaction with a minimum lot. Thus, the industry came to the conquest of the segment of the population that previously did not have the financial ability to participate in currency trading. On stage proudly rose a cent account, giving everyone the opportunity to feel like a bidder with a Deposit of only $ 1.As one of the worthy options broker with cent accounts, you can paralitico company.
The advantages and disadvantages of cent accounts
So why not make all the accounts cent, simply by lowering the minimum lot size in the trading accounts? It's a matter of positioning and not wanting to scare part of the audience that he hoped to work with the breeding of their operations on the market. The fact is that if dealers love to tell and to prove that their standard classic account necessarily somewhere displayed, in the case of their younger brothers most of DTS are trying to answer vaguely or not at all to be honest, by the counterparty in transactions in such accounts, they are themselves.
Indeed, a General conclusion of the transaction on the interbank market can say, if we are talking about the Deposit of 1 dollar, and the transaction 0.0001 lot? Novice traders praised the "penny" account. Especially those who do not yet feel confidence to take up the standard. They were able to evaluate the fans of the martingale system in conjunction with the method of averaging.
Now a little more about what exactly is a cent account. In the terminal, your account will differ from the standard dollar just the fact that all values will be multiplied by 100. For example, a trader invested $ 10 on cent account. Opening a terminal, he will see a balance of 1000,but, as You know, it's not $ 1000, as 1000 cents. Rebalancing is not the only thing you should pay attention, one of trading now does not equal $ 100,000, and 100000 cents.
Minimum denomination may be different in different DTS. The 0.1 lot in cent account means 10,000 cents, and each completed item on the EUR/USD will be priced at 1 cent. If the available lot is 0.01, the amount of 1 cent will meet the pass market price 10 pips on EUR/USD. The deal volume is 0.01 lot in cent account would be equal to the amount of the transaction 0.0001 lot on a dollar account, if a standard account would be so small lots.
The importance of cent accounts
The emergence of cent accounts helps to increase the number of interested in Forex trading who wish to try their hand, to feel part of a community of traders. Earlier, the transition from a demo account into a full trading account was quite a sharp that psychologically disturbed beginners to successfully carry out trading operations.
It's one thing when you risk nothing, practicing on the demo and another when each transaction on a standard account is significant for the novice losing money. Opening the "penny" account, the trader may enter on the real account, getting used to all its features psychologically, but not to risk significant funds.
Not all companies provide an opportunity to its customers to work with 1 or 10 USD. Here the important question of the positioning of the company. Some are relying on a lot of small deposits, others are trying to attract even a small number of clients, but still with serious amounts. Not every company will like to fuss around of traders who brought the broker a few dollars. Perhaps it is reasonable to draw an analogy with the stores that also come in different price categories. I think little R is a very important step for the promotion of Forex.
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| Category: Forex | Added by: (06.11.2017)
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| Views: 347
| Rating: 0.0/0 |
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