Difference Between MINI and MICRO accounts

[yolybear]

What is the difference beteween a mini and micro account?

I have heard that the mini is a 10K account while the micro is a 1K account? But what does this really mean?

and which fx brokers offers the micro account?

[SirForex]

What is the difference beteween a mini and micro account?

I have heard that the mini is a 10K account while the micro is a 1K account? But what does this really mean?

and which fx brokers offers the micro account?

Hi there,

Mini Account (1 lot = $10,000)
Micro Account (1 lot = $1,000)


Hope this helps,

Regards

[chofman]

Technically, the lots are measured in units not dollars.

However, the real implication is how it affects your position size and real (position) leverage.

To illustrate, suppose you have a trade that you need a 50 pip stop-loss. If you only have $1000 dollars capital and you are using a mini account this corresponds to risking 5% (EUR/USD) of your capital on this trade. Which may be considered by many as risking too much if you are a beginner.

Just go read as much as you can about money management and leverage to further understand this idea.

I would consider looking into Oanda, as they do not have fixed lot sizes.

[ddblue]

Sorry of this is too basic a question, but I was curious - when using a mini, you can still choose between .10 and 1.00 leverage when making trades, right?

If I wanted 1 pip to be USD$10.00, what kind of account would I need?

[VulcanClassic]

I do believe that this is spelled out in the school of pipsology.

xxx/USD

1k = 10 cents / pip = 1 micro lot
10k = $1/pip = 1 mini lot or 10 micro lots
100k = $10/pip = 1 standard lot or 10 mini or 100 micro lots.

Micro, mini, and standard accounts all allow you to do $10/pip.

Micro and Mini allow you to do less which is what most people need to start with. Only the big dogs open a Standard account.

Anyone please correct me if I'm wrong.

[Andrewunknown]

1k = 10 cents / pip = 1 micro lot
10k = $1/pip = 1 mini lot or 10 micro lots
100k = $10/pip = 1 standard lot or 10 mini or 100 micro lots.

Micro, mini, and standard accounts all allow you to do $10/pip.

This is exactly right.

[ddblue]

Thank you folks!

[ddblue]

Actually, I'm still a little confused -

Basically, I want to know how volume and leverage are connected. First, I thought this was the difference between mini and micro accounts, but apparently it isn't.

I read babypips, but I'm still not 100% clear.

I thought leverage was related to how much 1 pip is worth. Like, how much money you're buying in the market with your actual money. But that seems to be what volume is, so I'm a little confused.

Would any of you kind folks please shed some light on this for me? I'd really appreciate it

[daydreamer65]

Actually, I'm still a little confused -

Basically, I want to know how volume and leverage are connected. First, I thought this was the difference between mini and micro accounts, but apparently it isn't.

I read babypips, but I'm still not 100% clear.

I thought leverage was related to how much 1 pip is worth. Like, how much money you're buying in the market with your actual money. But that seems to be what volume is, so I'm a little confused.

Would any of you kind folks please shed some light on this for me? I'd really appreciate it

Volume on MT4 = trade value (in units or lots, 1 lot = 100 000 units,
0.1 lots (one tenth of a lot) = 10 0000 units, 0.01 lots (one hundreth of
a lot) = 1 000 units)

Leverage, in this context, is the amount of money you need to deposit
or margin to control a specific value of trade.

ie.

Eur/Jpy 100 000 units (1 lot (volume) = $157 000, (hint: Eur/Usd is at 1.57)

at 100:1 leverage margin (or deposit) = 157000/100 = $1 570

at 50:1 leverage 157 000/50 = $3 140

both of these trade = $10/pip.

[rhodytrader]

Basically, I want to know how volume and leverage are connected. First, I thought this was the difference between mini and micro accounts, but apparently it isn't.

I read babypips, but I'm still not 100% clear.

I thought leverage was related to how much 1 pip is worth. Like, how much money you're buying in the market with your actual money. But that seems to be what volume is, so I'm a little confused.

The size of the transaction is what determines pip value. Leverage determines the margin requirement (and how large a position you may take).