forex dollarz
This type of Forex trading account is the most common. That is not why it is called the standard account. The name is derived from the fact that with this type of account, traders can make transactions of the standard lot, which in Forex is $100,000. Like you probably know by now, the ability to trade lots of $100,000 does not mean you need to invest that entire amount. Standard accounts generally come with leverage of 100:1. This means that you only need to invest a capital of $1,000 to trade using a standard acount
Pros:
Potential for Gain: Since you are risking more money here, the potential for profit is also greater. With this type of account, each pip is worth $10, therefore, with a 100 pip gain, the trader can make a $1,000 gain. That is unprecedented in the Forex market with any other type of account
Perks in Service: As I am sure you can understand, when traders enroll in a standard trading account, the service they receive from the broker is different than when trading with a mini account. This of course is logical and is understood both from the trader's and the broker's perspective. These perks can include smaller spreads, as well as many other possible advantages.
Cons:
Potential for Loss: This is an obvious down side of standard trading accounts, but one that must be said. With the possibility of gaining a large profit in a short period of time exists the exact flip side of the coin. If the currency makes that same 100 pips movement, but in the other direction, you are out $1,000. For this exact reason, standard trading accounts are intended for experienced traders who can also afford to risk relatively large amounts of money
Large Capital Required: The minimal amount of capital required to open a standard account differs between brokers. Some require $2,000, while others require $5,000 and even $10,000, which makes this type of account a very exclusive trading account type
forex dollarz
This type of Forex trading account is the most common. That is not why it is called the standard account. The name is derived from the fact that with this type of account, traders can make transactions of the standard lot, which in Forex is $100,000. Like you probably know by now, the ability to trade lots of $100,000 does not mean you need to invest that entire amount. Standard accounts generally come with leverage of 100:1. This means that you only need to invest a capital of $1,000 to trade using a standard acount
Pros:
Potential for Gain: Since you are risking more money here, the potential for profit is also greater. With this type of account, each pip is worth $10, therefore, with a 100 pip gain, the trader can make a $1,000 gain. That is unprecedented in the Forex market with any other type of account
Perks in Service: As I am sure you can understand, when traders enroll in a standard trading account, the service they receive from the broker is different than when trading with a mini account. This of course is logical and is understood both from the trader's and the broker's perspective. These perks can include smaller spreads, as well as many other possible advantages.
Cons:
Potential for Loss: This is an obvious down side of standard trading accounts, but one that must be said. With the possibility of gaining a large profit in a short period of time exists the exact flip side of the coin. If the currency makes that same 100 pips movement, but in the other direction, you are out $1,000. For this exact reason, standard trading accounts are intended for experienced traders who can also afford to risk relatively large amounts of money
Large Capital Required: The minimal amount of capital required to open a standard account differs between brokers. Some require $2,000, while others require $5,000 and even $10,000, which makes this type of account a very exclusive trading account type
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