Deposit
What is a deposit ?
Deposit - An amount of money transferred to a bank or other financial institution by a depositor for a certain, unspecified period of time.
If we're talking about bank depositIf we have an actual debt of the bank to the client, which is paid after the time specified in the contract of deposit, and the depositor receives additional interest due to the fact that the bank let the received funds into circulation.
In exchange terminology, by deposit means the amount of money that a market participant deposits into his trading account opened with the brokerThe deposit is a security deposit for a broker, a dealing center or a bank, for independent execution of operations on stock exchanges. Besides, the deposit is an insurance pledge for the broker when using leverage.
What types of deposits are there?
Conditionally, the deposit when trading on the foreign exchange market can be divided into three types:
- Trader's personal funds
This is the money that the trader made on his deposit and which he can dispose of at his discretion.
- Bonus funds of the broker
These are funds that are credited to a trading account by a broker as part of some contest or promotion. As a rule, this money is intended solely for trading and is not available for withdrawal or available after certain conditions are met.
- Virtual Tools
Virtual funds, which are credited by the broker when you trade on a demo account. They have no value whatsoever. Of course, there are no funds deposited/withdrawn on the demo account.
Where is the deposit displayed?
You can see the size of your deposit in your personal cabinet on the broker's website or in the terminal MetaTrader 4 in the tab "Terminal".
What is the minimum deposit required to trade on ?
A small deposit is popular among beginning traders and traders who test trading strategies. Currently, almost all brokers and dealing centers provide accounts like "Micro" or "Mini", which are called "centoviks" among traders. The advantage of these accounts is that the minimum deposit on them can be only a few cents. Such accounts are not suitable for earning, but are the best option for switching from demo to real account and testing trading strategies.
Is it possible to trade on no deposit?
As strange as it may sound, it is possible to trade without a deposit. Two variants are possible here:
- Participation in traders' contests
Brokers and dealing centers periodically hold contests, in which all traders, without exception, can participate. As a rule, traders' contests are held on demo accounts, but the prize is real money, on which it is already possible to trade.
- Posting on forums
Some forums charge a user a certain amount of money for writing posts or comments in forum threads. If the trader has something to share (flooding on such forums is not welcome and strictly prohibited), he receives money for his posts, which are transferred to his trading account. As a rule, this money comes in the form of a bonus available for trading. The profit traded with such bonuses is already the trader's personal funds.