Indices Trading Accounts - Indices Accounts Types Explained - Indices Trading Account Meaning
3 Types of Indices Accounts - Standard Indices Trading Account, Mini Indices Trading Account and Micro Indices Trading Account - Indices Trading Accounts Examples
In recent years retail indices trading has grown hugely in popularity and the demand for different types of Indices trading accounts has grown. There are many different indices trading account types available to any indices trader who wants to invest in the online indices trading market - Indices Trading Account Meaning.
The Indices trading market is a highly indices trading leveraged market for speculating on indices trading instrument 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 indices trading accounts available to help investors better manage their indices trading account capital as well as their indices trading 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 Indices trading account type to open.
Below is a comparison of the three types of indices trading accounts commonly used to trade indices. The indices 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 - Standard Indices Trading Accounts Types Explained
Indices Trading Account Meaning - Standard Indices Account. A Standard Indices Account is denominated in US Dollars and indices trading 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 trading trade transaction. This indices trading account option is the most suitable for indices traders with enough capital to invest in indices trading - this indices trading account option requires $10,000 to $50,000 dollars in starting capital, For this standard indices 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 indices trading account and only opening trades with only 2% of the trading capital you have in your indices trading account. However, most online indices trading brokers will still open this standard indices trading account for you if you have more than $10,000.
With indices trading leverage of 100:1, you will borrow from your indices trading broker (with indices trading leverage of 100:1, your indices trading broker gives you $100 dollars for every $1 dollar that you have in your indices trading account, therefore if you have $1,000, the indices trading broker will give you $100 dollars of indices trading leverage for every $1 dollar you have, meaning after indices trading leverage you will have $1,000*100=$100,000 which you can then use to trade indices ).
2. Mini Indices Trading Account Explained - Mini Indices Trading Accounts Types Explained
Indices Trading Account Meaning - Mini Indices Trading Account. A Mini Indices Trading Account is a indices trading account that allows indices traders to make trades using indices trading mini lots. A indices trading mini lot is equivalent one-tenth that of a indices trading standard lot. Indices trading brokers offer indices trading mini lots as a way to attract indices traders who do not have a lot of capital - as the minimum required capital for starting indices trading with a mini indices trading account is about $1,000 USD
Mini lots are similar to standard lots; however, mini lots are traded in lots equivalent to one-tenth that of a indices trading standard lot. This lowers the initial deposit required to open a mini indices trading account and offers better risk management for indices traders without a lot of indices trading capital.
This mini indices trading account is recommended for those indices traders with only a few thousand dollars as indices trading capital.
A mini indices trading account is suitable for indices trading account equity balances between $5,000 and $10,000. The indices trading trade transaction lots are smaller so the indices traders without enough capital to open indices trading standard lots have better indices trading money management for their indices trading account equity balance.
3. Micro Indices Trading Account Explained - Micro Indices Trading Accounts Types 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 indices trading accounts are often appropriate for indices traders without a lot of indices trading capital and can sometimes be opened with only a $100 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 a given indices trading instrument traded in the indices trading market. But many indices trading brokers offer fractions of this indices trading standard lot to enable more retail indices traders to access the indices trading market. Being able to offer indices trading mini lots and indices trading micro lots reduces the minimum indices trading trade transaction size thus giving the indices trading beginner traders and also those indices traders without a lot of indices trading capital to start trading and get a feel of the indices 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 indices 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 trading broker - so as to practice placing indices trading trade transactions before opening a real indices trading account and investing with real money.
During the indices trading training period using the indices trading demo practice trading 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 3 indices trading accounts are essentially the same - those indices trading skills and indices trading strategies required for the Standard indices trading account or Mini 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 indices trading account type.