In currency trading, with a small deposit you may begin trading. Leverage gives the trader the capability to exchange with little balance. Once you start to make regular profit, you can deposit big amount.
If you are a complete beginner for forex, then go with very little investments like $10 to 30$ and also make sure to keep your leverage as low as possible like 1:10 or 1:20. Else if you know how trading works and want to make some good returns, you can start with investments like $100 dollars until you feel confident to invest more.
@williearnold With 10$ capital and 1:10 or 1:20 leverage trading is not possible. To open a .01 lot, it requires 1000$. So 10$ (capital×10(leverage)=100$. Initially a newbie can do trade with 100$+ investment to learn proper money and risk management.
UweMoench posted: In currency trading, with a small deposit you may begin trading. Leverage gives the trader the capability to exchange with little balance. Once you start to make regular profit, you can deposit big amount.
Yes. You can go ahead with trading with small deposits, it will develop knowledge. And from that experience I will be able to trade with big investment.
williearnold posted: If you are a complete beginner for forex, then go with very little investments like $10 to 30$ and also make sure to keep your leverage as low as possible like 1:10 or 1:20. Else if you know how trading works and want to make some good returns, you can start with investments like $100 dollars until you feel confident to invest more.
Every beginner should make a good plan to make money from this market.
I do not think there is a good or wrong answer to your question. In the beginning it is better to start small, and take little steps so as to learn while minimising your risks. I also suggest starting off with a demo account at first. It helped me a lot as I understood some tricks of the trade. At the end of the day it also depends on how much losses you feel okay with bearing, and how much risks you are willing to take. In my case I like to be quite careful.
it totally depends on how much you are willing to lose or afford to lose. if your income is $10000 you cannot go on depositing $20000 in the market. what will you eat after you lose. so these things needs to be taken care of.
The author said a worthy thing, about money management that depends on account balance. I started with 5k account that was blew during several bad days. It was the beginning and it was trading without knowledge. So... if you are a beginner, it's better to start with at least 100 usd and just get some knowledge and exp during small trades.
I believe that it is better to start with $5000-$10,000 in order to understand the principles of trading, risk and money management and psychology. Surely, it depends whether you can afford such sum of money without going in debt, but if you can and if you want to devote your life to trading, you'd better start with such sum of money.
This question is pretty hard to answer it is a sheer subjective matter. First of all, you should understand your objectives and what you want to achieve in the forex market. If you want to make some decent profits which will allow you to make trading your full time job, then you need to have a pretty large deposit. You need to calculate how much money you need for living every month and multiply this number by 10, at least. If you want to learn how to trade properly, I believe that it is better to start with a budget of $5000-$10000. In this situation you'll learn how to control your emotions and use money and risk management and get the results which will motivate you to keep the learning going. Surely, if you don't have such money right now, you can deposit whatever sum you want, but you should take into account the facts that 1) you'll hardly earn anything tangible, 2) if you want to have good results, you have to take big risks.
I would say that it depends on how confident the trader is in their knowledge and skills. For example, when I started working with a broker, I started with a minimum amount of $ 100, and I think this choice is the most correct.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
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