Difference between trading volume of 0.1 on micro and standard account?

I’ve read and read and read and fail to fully understand this, thus i’ve opened an account to try and test things out and fail to understand too.

What’s the difference between buying a volume size of 0.1 on a micro and standard account? I have purchased 0.1 on both accounts and they cost the same, return the same and all.

The only difference I suspect is the free margin and margin level? So am i right to say that for a micro account, with a volume of 0.1, I can last a lot longer than a standard account with a volume of 0.1?

If i wish to open an account of $1000, and risk 1% per trade ($10), would you recommend me opening a micro account with leverage 1:100?

Any help here would be wonderful, thanks people for helping a newbie like me :x

Generally there is no difference at the 1 lot, 0.1 lot level.

The difference is with the micro account you can trade
0.01 lots.

ie you can trade smaller amounts with the micro account.

Hello,

Well first: it’s impressive to find a new trader that ‘shooting’ to risk only 1% instead of the usual 2% (or more). Stick with this rule, ‘shoot’ EVENTUALLY (when you have enough capital) to risk 0.1% per trade, and you won’t be sorry!!! You’ll ‘make it’ in this business!!!

I’ll try to help you as best I can but what you’re saying about the difference between the micro and standard account is not making sense to me (or you hence your post I guess).

Put it this way (and this is not ‘broker specific’ and I believe to be ‘the norm’ insofar as the description of lot sizes is concerned) (and I’m using any pair ???/USD here as an example for simplicity sake and a assuming the base currency the account is USD):

A standard lot is 100 000 units which will give you $10 per pip movement.
A mini lot is 10 000 units which will give you $1 per pip movement.
A micro lot is 1 000 units which will give you $0.10 per pip movement.
A nano lot is 100 units which will give you $0.01 per pip movement.

The problem comes in where some brokers will ‘mix things up’ (or some traders for that matter) insofar as the descriptions go.

Put it this way: it really should not matter what the account ‘type’ is (micro, mini, or standard). What you need to be sure of is that with whatever account type you have: how many units are you buying or selling when inputting 0.1 as here is where it MAY be ‘broker specific’ (just to confuse really)!!! LOL!!! Also: there may be a difference between the leverage offered by a broker between micro and standard accounts (and sometimes there’s further disctinctions made or different rules for each type of an account at a particular broker such as minimum margin requirement etc.).

And just bear in mind: the above has nothing to do with leverage (the lot sizes and $ value per pip movement I mean). The only difference that leverage makes is how much of your trading capital is ‘tied up’ in a trade. In other words: the $ value per pip movement has nothing at all to do with leverage.

As far as your capital is concerned I’d say to you like this: take whatever trading system(s) you’re using and see if, with the entry signals given and where you would be required to place your stops, you can take trades on the daily timeframes with the trading system(s) while not risking more than 1% of your account. If this is possibe: then you’re 100% ‘good to go’. The point is that the longer the timeframe the greater the distance (normally) between your entry and stop loss. So if your trading system(s) will allow for you to place trades on the daily timeframes (which I recommend but ‘that’s just me’) and the risk on any one trade is only 1% then it means your’e ‘real safe’ on the shorter timeframes (which I don’t recommend usually but again ‘that’s just me’ and is trading systems specific).

Regards,

Dale.