Leverage

When you perform a Forex trade, you buy an amount of money, by a draw. The amount of money in a lot depends on the type of account you have. In a standard, a lot is usually equal to US $ 100000, and a mini-account, a lot is $ 10000. But Forex trading accounts are leveraged, which means that you do not need to own a lot of expensive than money, you just have to master it, and if you do, he earns profit is yours. To obtain the right to control a large number of currencies, you put up a much smaller amount of money in a kind of lease agreement called a security deposit. Leveraging affects the amount of profit you earn, as well. In a standard, one pip of a currency pair that the American dollar as the base is equal to $ 10 US, and a mini-account, one pip is equal to $ 1. This means that if you correctly predict the movement of the market and execute a trade that earns you two hundred pips () 2000, if you have a mini-account, it is $ 200.
To maximize your profits in Forex trading, you do not have a standard, not very beginning operator can afford it. On the other hand, if you believe you have good estimates on the market, you can trade more than one lot. To continue the example above, if the success of your business, you win two hundred pip and you bought five batches of the currency, in a mini-account you would have established $ 500 of your own money, but earned a profit of $ 1,000 (two hundred pip Times five lots). In a standard, you must set up $ 5,000-and earned $ 10000.