Indices Trading Accounts
Indices Trading Accounts Examples
In recent years retail indices trading has grown hugely in popularity and the demand for different types of stock indexes trading accounts has grown. There are many different stock indexes trading account types available to any indices trader who wants to invest in the online stock indices market - Indices Trading Account Meaning.
The stock indices market is a highly indices trading leveraged market for speculating on indices price valuations. Indices traders can purchase large amounts of indices trading units using leverage - Indices Trading Leverage is what makes indices trading attractive to many online indices traders - with indices trading leverage a indices trader can make more profits or losses because they use less of their capital and borrow the rest.
There are different types of stock indexes trading accounts available to help investors better manage their indices trading account capital as well as their indices trade transactions.
How a Real Indices Trading Account Looks Like
It is therefore important that the indices traders consider what they want to get out of their indices trading, before deciding on the stock indexes trading account type to open.
Below is a comparison of the two types of stock indexes trading accounts commonly used to trade indices. The stock indexes trading account types review below explains the different features of each of the three types of indices trading accounts.
1. Standard Indices Trading Accounts Explained
Indices Trading Account Meaning - Standard Stock Indexes Account. A Standard Indices Account is denominated in US Dollars and indices trade transactions are placed using standard lots. One lot is also known as a one contract. Minimum opening capital - at least $10,000 USD.
1 contract refers to the minimum size of a single indices trade transaction. This indices trading account option is the most suitable for indices traders with enough capital to invest in stock indexes trading - this indices trading account option requires $10,000 to $50,000 dollars in starting capital, For this standard stock indexes trading account the indices trader will not be undercapitalized and with good indices trading money management rules and indices trading money management strategies, this standard indices trading account option has the best chance for profitability because it is not undercapitalized. Under capitalization is what makes most indices traders in indices trading not profitable.
It is not recommended to open a standard indices trading account unless you have an account balance of at between $10,000 minimum and $50,000.
Professional Money Managers recommend $50,000 Dollars minimum to open this standard stock indexes trading account and only opening trades with only 2% of the trading capital you have in your stock indexes trading account. However, most online indices brokers will still open this standard stock indexes trading account for you if you have more than $10,000.
With indices trading leverage of 100:1, you will borrow from your indices broker (with stock indices leverage of 100:1, your indices broker gives you $100 dollars for every $1 dollar that you have in your stock indexes trading account, therefore if you have $1,000, the stock indexes broker will give you $100 dollars of stock indices leverage for every $1 dollar you have, meaning after stock indices leverage you will have $1,000*100=$100,000 which you can then use to trade indices ).
2. Micro Indices Trading Account Explained
Indices Trading Account Meaning - Micro Indices Trading Account. Micro Indices Trading Accounts use lot sizes of only equivalent one-hundredth that of a indices trading standard lot. These Micro stock indexes trading accounts are often appropriate for indices traders without a lot of indices trading capital and can sometimes be opened with only a $5 minimum balance.
This Micro indices trading account option allows the indices trader to open trades in micro lots. 1 indices trading micro lot is one-tenth of a indices trading mini lot and one-hundredth of a indices trading standard lot.
This Micro indices trading account option is generally best suited for indices trading account equity balances that are between $1,000 and $5,000
In indices trading, one indices trading standard lot is the standard transaction minimum of indices instrument traded in the stock indexes trading market. But many indices brokers offer fractions of this indices trading standard lot to enable more retail stock indexes traders to access the stock indexes trading market. Being able to offer indices trading micro lots reduces the minimum indices trade transaction size thus giving the stock indices beginner traders and also those indices traders without a lot of indices trading capital to start trading and get a feel of the stock indexes trading market without investing a lot of indices trading capital.
There is learn indices trading online tutorials that a indices trader can read even before opening a real stock indexes trading account, and to get extra practice in indices trading before opening a real indices trading account a beginner indices trader should open a practice Indices demo trading practice account with a indices broker - so as to practice placing indices trade transactions before opening a real stock indexes trading account and investing with real money.
During the indices trading training period using the stock indexes trading demo practice account, the beginner indices trader will learn the key factors needed to succeed in indices trading such as; indices trading education, indices trading money management, indices trading plan and indices trading systems.
The types of indices trading strategies used and the skills required for any of these 2 stock indexes trading accounts are essentially the same - those indices trading skills and indices trading strategies required for the Standard indices trading account or Micro indices trading account are the same the only difference to be adjusted are the indices trading money management rules for each stock indexes trading account type.