Minimum deposit on the market
Many newcomers wonder what the minimum deposit , the minimum necessary amount that must be placed on the deposit to be able to participate in the auction. There can be no unambiguous answer to this question. In this article we will try to answer the reasons for this ambiguity.
When entering into a contract with one or the other Dealing Center (DC) and becoming its client, you get an account for depositing a sum of money and subsequent operation with it while trading on the foreign exchange market. This contract, as a rule, stipulates the minimum amount required to start working on the market minimum deposit. You can place as much money as you want, but the minimum must be respected, only in this case your deposit will work.
It should be noted that the requirements imposed by the DC to minimum deposit amountThe minimum possible lot size is not always convenient for trading. Let's assume that the minimum size of an opened lot is 0.1 lot, i.e. 1 point costs 10 cents, while 10 pips are already worth 1 cU. With a 50 cents deposit, the most you can stand is a 500 points drawdown (here we do not even consider Margin Call). And in this case we are talking about trading on only one currency pair. When you open deals on several currency pairs at the same time, the maximum drawdown is less than 500 points when evaluating deals as a whole. Moreover, five hundred pips is not a great value, for example, the currency pair GBP/JPY is quite able to pass this distance for half a day or for a longer period.
So let's conclude from all of the above: minimum deposit on - is the amount traders usually trade to test their strategy or to try out the conditions of the Dealing Center, for permanent trading, most often this amount will not be enough.
The author of this article in his communication on various forums has repeatedly noticed: many beginners are wondering what is the minimum deposit, the minimum required amount that must be placed on the deposit to be able to participate in trading. There is no simple answer to this question. In this article we will try to answer the reasons for this ambiguity.
Concluding a contract with a Dealing Center (DC) and becoming its client, you get an account for depositing a sum of money and subsequent operation with it while trading on the foreign exchange market. As a rule, this contract stipulates the minimum amount, which is necessary to start working on the market. You can deposit as much money as you want, but the minimum amount must be respected, only then your deposit will work.
It should be noted that the requirements of brokerage companies to the minimum deposit size, as well as the minimum possible lot are not always convenient for trading. Let us assume that the minimum lot to be opened is 0.1, i.e. 1 pip costs 10 cents, and 10 pips costs 1 cU. With a 50 c.u. deposit, the most you can stand is a 500 points drawdown (we do not even take Margin Call into account here). Moreover, in this case we are talking about trading on only one currency pair. When you open deals simultaneously in several currency pairs, the maximum drawdown is less than 500 points when evaluating deals as a whole. Moreover, five hundred pips is not a great value, for example, the currency pair GBP/JPY is quite able to pass this distance for half a day or for a longer period.