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?
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.
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?
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.
This is exactly right. 
Thank you folks!
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.
The size of the transaction is what determines pip value. Leverage determines the margin requirement (and how large a position you may take).
You guys have a gift when it comes to explanations. I’m really starting to get it.
So let me run this analogy by you… as I’m still trying to wrap my head around margin.
Margin is like a deposit - then, once you have deposited that, you get your $10 a pip what you see is what you get set up. Is this correct?
For example,
I start an account with $6,000.
At 50:1, I need 2% margin for a trade of 100,000 units - so $2,000.
So, I should basically forget about that $2,000, and from that point on, I am free to move (1 pip = $10) as I need to, within a $4,000 range?
Is that how it works or am I totally wrong?
Sorry for all the questions again, but really am grateful for the help.
QUOTE=ddblue;55331You guys have a gift when it comes to explanations. I’m really starting to get it.
So let me run this analogy by you… as I’m still trying to wrap my head around margin.
Margin is like a deposit - then, once you have deposited that, you get your $10 a pip what you see is what you get set up. Is this correct?
For example,
I start an account with $6,000.
At 50:1, I need 2% margin for a trade of 100,000 units - so $2,000.
So, I should basically forget about that $2,000, and from that point on, I am free to move (1 pip = $10) as I need to, within a $4,000 range?
Is that how it works or am I totally wrong?
Yep that’s how it works.
100,000 units is not necessarily the same thing as $100,000. Your margin requirement is based on the total value of your trade, not the units. That means if you are trading 100k EUR/USD at 1.5000 the total value is $150k, so your 2% margin is $3000
Really? You’re not being sarcastic?
Because I asked a live help person at a random broker (I’ve been testing various brokers’ live help) and they said that was wrong… and I didn’t understand their explanation.
If my explanation is roughly accurate, i’ll be happy!
So really? Is that how it works?
Yep, go to Oanda, google it, download a demo account,
open a market order then play around with various figures.
You can also set up sub accounts with different leverage,
ie 50:1, 20:1, 10:1 (3 different accounts) then plug in the
figures & check for yourself.
The Oanda market order is probably the best device for
getting to grips with this subject.
Remember 100 000 units = 1 standard lot.
I think he was talking about Usd/Chf in a sterling account Rhody. :lmao:
Thank you very much! Actually, finally paying attention to margin in my demo helped a lot I appreciate the clarification!
One more question -
If that is how leverage works, considering that you can adjust the value of your pips based on the lot sizes you buy (in turn managing the level of risk you are willing to take), why does everyone say that higher margin is a double edged sword?
Why would I not want higher margin? Doesn’t higher margin just mean the initial deposit that its required you maintain is simply lower? How does one “lose their money faster” with higher margin?
[I]One more question -
If that is how leverage works, considering that you can adjust the value of your pips based on the lot sizes you buy (in turn managing the level of risk you are willing to take), why does everyone say that higher margin is a double edged sword?
Why would I not want higher margin? Doesn’t higher margin just mean the initial deposit that its required you maintain is simply lower? How does one “lose their money faster” with higher margin?[/I]
Higher leverage allows you to control a larger position, therefore (potentially) increasing your gains with set margin, but it also (potentially) increases your losses by the same amount, ergo the “double edged sword” - that’s why it’s imperative that you use appropriate money management, to keep risk under control and maximize your winners.
Hope this helps, and anybody please correct me if I sound confusing.
Pepe :-))
Let me add to this as a question from another newbie. When we talk about money management and the 2-3% (for newbies), I was looking at that 2-3% as total margin used at one time. But now that I look at it more, while the former may be true, at 10:1 leverage you might lose $1 (depending on how many units, and where and if you put a stop loss) at your 2-3% margin on a $1k funded account, but at 100:1 leverage at the same 2-3% margin you stand to lose $10 on a bad call. Of course you can profit better as well, but wielding larger margins could suprisingly take you well out of your money management rules if your not careful. I know $10 still isn’t alot, but at the rate I’ve been going, it would add up a lot quicker then a few cents! I think the best reason for using lower leverages IS to learn good money management and keep yourself in check when you start getting emotional. It’s always easier to spend someone else’s money.
Ya, that was still a question.
I will point you to the school.
Leverage the Killer | College: The Number One Cause of Death for Forex Traders | Learn Forex Trading
But also add that high leverage in the correct hands is not a
bad thing.
That said in the wrong hands it is a nightmare, it advocates over
confidence, gambling & basically stupidity.
With a $1000 account a trader can theoretically trade 2 full lots @
400:1 leverage, that’s $20/pip.
ie E/Y, 200 000 units = $317,578 (200 000 x Eur/Usd rate, 1.58 approx)
$317 578/400 = $793.94
$1000 - 793.94 = 206.05 left to lose, @ $20/pip = 10 pips,
you may lose 3 pips on the spread to start so now we are down
to -7 pips & our money has gone, but wait we do get our
margin (deposit) back Woo Hoo. Our account is now $793.
We just lost $200 probably on a price spike, the market has just turned
around & gone 20 pips in our direction, but we are out of the trade,
Boo Hoo. (20 x $20 = $400 lost)
Quick lets get back in it’s going our way, only got $793 though, so
let’s trade 1 lot E/Y, 100 000 units = $158 000, cost = $395.
$793 - 395 = $393/�10 = 39.3 pips now we’re cooking on gas, we
are bound to win now.
But as is the way of the markets (& those thieving brokers) the market
turns again, down 20 pips, hit cancel trade before it hits a margin call,
(getting clever see) 20 x $10 = - $200. $793 - $200 = �593. We have
nearly halved our account in 10 minutes.
That is how quick it happens in the stupid (gamblers) world & it’s
all those brokers/computers/ISP/dog/wife/girlfriend’s (add excuse later)
fault.
As you can see this is a one off case, it will never happen to me the
stupid trader said. :lmao: Try it, get a demo account with North
Finance (400:1 leverage) see how long you can last. In demo because
it ain’t your money you may even last 1 hour.
The Forex market is a marathon, not a sprint, learn to trade not gamble.