Can I Start with Just $1000 for Mini Account?
For those starting with a budget of $1,000, the trading Mini account is an excellent option. You can open either a real account or a standard trading account with this amount.
The Mini account is a type of account where people trading stocks open positions using Mini lots, which are one-tenth of the size of a standard lot. These Mini lots/contracts are smaller than the standard lots. People who trade using a Mini Account can deposit a small amount of money, like $1,000, and use the trading leverage provided by the Mini account to trade the Mini lots.
As an example, with a leverage ratio of 100:1, a trader is able to borrow $100 from their online broker for every $1 in their account. This means if they have $1,000 in their account, they can borrow $1,000100:1 leverage = $100,000 after trading leverage. Traders are then able to use this $100,000 in their margin stock account to open and trade Mini contracts.
To understand trading leverage and margin accounts, refer to the following indices courses for guidance:
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