How to trade cent accounts correctly? Important features of cent trading

How to trade cent accounts correctly? After all, this type of account is the best way to enter real trading without any special risks. In addition, trading on cent accounts allows you to test your own strengths in real trading and make a profit at the same time.

Also, you can generally understand the psychology of trading currencies from the inside, because trading on cent accounts is to work on a real account, only with cents.

Trading on cent accounts. What are they for a trader?

The main problem of most newcomers to the foreign exchange market is the size of the initial capital. Some have mandatory conditions regarding the minimum deposit - the presence of at least several hundred dollars on the trading account. But even such a small amount for some, not everyone is ready to take risks, since initially no one can say for sure whether he will be able to achieve a positive result and receive the expected dividends or not.

For this reason, many modern companies today offer customers the service of being able to trade on cent accounts, making small-volume transactions, but really real in terms of the content. This makes it possible to really test your own skills and abilities, but without risking serious sums of money.

What is important to know when trading on a cent account? Learning how to work properly with mini accounts

We propose to consider the main points inherent in cent trading on Forex. You should be aware of this specifics in order to always remember about the possibilities of this type of account.

So, let's start with the size of the deposit... As a rule, brokers offering to use a cent account require at least $ 1 on it. But many companies have gone much further, and here a few cents will be enough for you to get started. And there are some, for example, (cent account NANO.MT4), where you can trade on them with a zero deposit.

The next point is that $ 1 on cent accounts will be equal to one hundred units of the base currency... In other words, $ 1 on cent accounts equals one hundred dollars on a standard (dollar) account. It turns out that let us assume that $ 10 of a cent account is the equivalent of $ 1000 of a dollar account, which makes it possible to trade quite effectively, observing all the requirements of money management.

But what is the right way to trade under such conditions?

Everything is simple enough. On the trading floor, cent accounts differ from standard ones only in that all indicators will be multiplied by 100. For example, you have added $ 10 to your cent account. Open the terminal and see - your balance is 1000 !!!? But this is not a thousand dollars, but 1000 cents. The same happens with other indicators - now the trading lot is also measured in cents and is equal to 100 thousand cents, not dollars, and the like.

On cent accounts, all trading operations take place at the micro-lot level, therefore, for each transaction, the risk management is small and corresponds to your deposit, which in turn makes the work on such accounts transparent and absolutely honest. Therefore, having about $ 100 on a cent account, you can expect, albeit not very large, but quite real profit.

As for the leverage, on cent accounts with some brokerage companies, it can be as high as 1: 1000 and even more.

But remember that you should not chase the size of leverage, since an increase in profit potential also significantly increases the level of risk, which can have a very negative impact on the results of trading activities.

It is better not to allow the unsuccessful outcome of a single transaction, to take away the lion's share of your depot. Of course, speculation in currencies cannot do without unprofitable transactions, but the point of this activity lies in the fact that there should be much less of them than profitable ones.

How to trade cent accounts correctly?

The first step for yourself is to answer this question: “ Why are you using a cent account?". If you need cent trading for training, you can use it on such an account. If you decide to trade on cent accounts for the purpose of making a profit, then let's look at some of the nuances.

As mentioned above, most traders trade on cent accounts, due to the lack of large amounts of money. Most of the tactics and strategies for trading on these accounts, imply income due to the high speed of the trend movement and the use of leverage. And again we will repeat - do not use too much leverage, 1: 200 will be enough.

Many Forex traders who are wondering how to trade cent accounts correctly mistakenly think that cent trading involves some special trading strategies. All this is not the case, if you wish, you can use any of the well-known trading methods - scalping, levels, and so on.

Three main advantages of trading on cent accounts

Cent accounts have many advantages, but we will highlight the most significant ones.

Firstly, cent accounts are real trading accounts, so no matter what size of the deposit you use, refers to it, you will still carefully, carefully think over every deal, plan every step and analyze mistakes - you will become a real trader.
Secondly, it is now possible to trade on Forex with the very minimum amount or without it at all, as, for example, with the broker Alpari and a number of others who have no such concept as a minimum deposit at all.
Well, and thirdly, trading on cent accounts is the most effective training with minimal costs.

Cent trading makes it possible to accurately understand the essence of the foreign exchange market, choose the most optimal, effective, consistently profitable trading system for yourself, get acquainted with the risk of money management, test new indicators, and also solve many other problems.

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