Starting Over to Get More (Basic Forex)

Well, like any other business, forex need capital to grow and generate enough profit for you. Most brokers apply the minimum requirement for anyone who wanted to open a real account with them. But of course you can start with more capital than the minimum required by the broker.

At first glance this seems a foolish thing. Buried large amounts of funds for an investment that may be new you know.

Forex is different from other investments that may be normal you know. In forex, the investor is active and determine their own investment decisions directly. In short, by calculation, you can specify the action to buy / sell your own and recorded a profit there. But contrary to the wrong decisions, loss can occur soon in your investment.

Let's do a simple calculation like this:

At the time this article was made, the GBPUSD exchange rate is 2.0100. That means opening a position to do as much as 1 lot on a contract size where required margin collateral 10,000 1% of the capital required, we require funds amounting to 2.0110 x 10,000 x 1 / 100 = 201 dollar. To open a position either Buy or Sell we need 201 dollars as margin collateral.

Say I start investing forex I with initial capital of $ 250 that means only the remaining $ 250 - $ 201 = $ 49 as a reserve fund to hold the movement in the opposite position to the position I am.

If a Buy position is taken at a rate of 2.0110. And then within a few hours GBPUSD 2.0061 down to the position of the position exposed to Buy I've exhausted the margin call. For those who do not know a margin call, it is our position is automatically closed by system due to lack of collateral us to restrain movement of the market. A nightmare for a forex trader.

In this case the margin call occurs because too lack of funds at the disposal to anticipate currency movements. Remember that we can not know what is happening in the future with 100% accurate. It could be after the price dropped to the 2.0061 price point back up the way you expect. Thus our predictions are basically accurate. It's just that we begin with a capital that is too small.


When viewed from above cases, a margin call may not need to occur if:

    Buy position is not at the price of 2.0110 but below it. At 2.0061 for example.
    My initial capital is greater than $ 250.

The first option requires both very good analytical ability and skill of a trader Proficient. Especially if you are a beginner. Veteran traders who were not able to know the price declines by exactly 100%. We are not psychic is not it?

Then What is the minimum required capital?

This question involves how your trading type, maximum drawdown and how proficient you are in predicting currency movements. The more proficient you are the less money needed to start your forex investing. About how to determine what type of trading and maximum drawdown, has been written in full in the article Create a Forex Trading System at the School.

However, simply start with enough capital. If you decide to not want to put your stop loss in trading future due to the difficulty of determining the proper amount of stop loss and profit generating probability of the true, legitimate. But of course, prepare enough capital and avoid over-sizing (too many open positions) when trading.

With 4 lots of open positions in any trading you should have a capital of $ 3,000 is more than enough. If something goes wrong in predicting currency movements, you can wait until prices come back reversed and the target profit is reached.

Learn what the Forex can Provide If you Open a Real Trading For $ 3000?

Of course with a suggested opening a margin of $ 3000 we are also responsible for the progress of your trading. Learn Forex provides various facilities of interest to those who trade with a minimum initial capital of $ 3000. Not only help secure your own trading, but also a variety of support you can get. Among them are:

    Premium Bonus CD or Learn Forex Forex Education Journal costing Rp 500,000 which will be sent directly to your address. You do not have to pay anything to get it.
    Trading assistance directly to your email for any suggest opening a predicted favorable position.
    First class administration process
    Free one-time one on one private training in Jakarta
    Various educational programs and other assistance that will be added from time to time.

Interesting is not it? Learn Forex course appreciate the confidence of customers. Those who invest more deserve more. That way you deserve to be called as a prestige customer Learning Forex.