Mini Forex Account

DEFINITION of 'Mini Forex Account'

A type of forex account that allows the trader to enter positions that are one-tenth the size of the standard lot of 100,000 units. A one-pip change in a currency pair (based in U.S. dollars), is equal to $1 when trading a mini lot, compared to $10 for a standard-lot trade. Mini lots are available to trade if you open a mini account with a forex dealer.

BREAKING DOWN 'Mini Forex Account'

Mini forex accounts are commonly used by beginner traders who are looking to gain experience in the forex markets. Traders are not limited to only trading one lot at a time, so these accounts are ideal for increasing exposure as trading confidence builds. To make an equivalent trade to one standard lot, a trader can just trade 10 mini lots. By using mini lots instead of standard lots, a trader is able to customize the trade and obtain greater control of his or her risk.

RELATED TERMS
  1. Forex Mini Account

    A type of brokerage account that is used by beginner traders ...
  2. Forex Account

    The type of account a forex trader opens with a retail forex ...
  3. S&P 500 Mini

    A derivative contract representing a designated fraction of the ...
  4. Micro Account

    A forex trade made up of contracts for 1,000 units of currency. ...
  5. Micro-Lot

    The equivalent to a contract for 1,000 units of the base currency ...
  6. Standard Lot

    The equivalent to 100,000 units of the base currency in a forex ...
Related Articles
  1. Forex Education

    Forex Minis Shrink Risk Exposure

    Trading less than a standard lot means getting in for less - and having less to lose.
  2. Forex

    Types of Accounts

    The different types of forex trading accounts you can choose from
  3. Options & Futures

    Mini Options

    Mini options contracts behave just like regular options except they are offered in sets of 10 shares instead of the usual 100.
  4. Forex Education

    Adding Leverage To Your Forex Trading

    The use of margin to trade in the foreign exchange market can magnify profit opportunities.
  5. Forex

    How Much Leverage Is Right for You in Forex Trades

    It isn’t economics or global finance that trip up first-time forex traders. Instead, a basic lack of knowledge on how to use leverage is at the root of trading losses.
  6. Forex Education

    Top Reasons Forex Traders Fail

    This market can be treacherous for unprepared investors. Find out how to avoid the mistakes that keep FX traders from succeeding.
  7. Forex Education

    Forex: Money Management Matters

    Currency trading offers far more flexibility than other markets, but long-term success requires discipline in money management.
  8. Forex Education

    How To Become A Successful Part-Time Forex Trader

    Getting started in this potentially profitable market is easier than you might think.
  9. Trading Strategies

    Optimal Position Size Reduces Risk

    Finding the right position size can minimize loss for a trader. Find out how.
  10. Forex

    Money Management

    Currency trading offers far more flexibility than other markets, but long-term success requires discipline in money management.
RELATED FAQS
  1. What are the advantages of using a mini forex account for trading?

    A mini forex trading account involves using a trading lot that is one-tenth the size of the standard lot of 100,000 units. ... Read Answer >>
  2. What types of accounts are available for forex trading?

    There are many different types of forex accounts available to the retail forex trader. Demo accounts are offered by forex ... Read Answer >>
  3. Where did the term 'pip' in currency exchange come from?

    Learn the definition of a pip, what it means in the scope of currency exchanges and how to determine its value. Find out ... Read Answer >>
  4. How does leverage affect pip value?

    A standard forex account has specific lots and pip units. A lot is the minimum quantity of a security that may be traded, ... Read Answer >>
  5. What is a pip and what does it represent?

    A pip is a very small measure of change in a currency pair in the forex market. It can be measured in terms of the quote ... Read Answer >>
  6. In the forex market, how is the closing price of a currency pair determined?

    The foreign exchange market, or forex, is the market in which the currencies of the world are traded by governments, banks, ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center