aximtrade:Minimum Capital Required to Start Forex Day Trading

Minimum Capital to Start Forex Day Trading

Thanks to leverage, traders can efficiently start forex trading with just an average capital. Nevertheless, having adequate capital is crucial for the trading strategy you decide to follow. Trading capital is a key factor for the success or failure of trading, needless to say among many other factors.

When it comes to deciding how much capital is required to start day trading, you have to consider your risk profile and expected rate of returns. A forex trader can trade with $100,000 or $100. But which is the ideal amount？

It is important to note that there is no ideal capital for trading, as this is highly subjective and differs from one trader to another.

The minimum amount of money you need to start with should be consistent with your goals. Other factors to consider are your trading style, your brokers minimum deposit requirements, level of experience, and risk exposure. In any case, you should never risk what you cannot afford to lose.

Leveraged Forex Trading

Forex leverageis an investment tool of using borrowed capital to maximize an investments potential return. It is defined as the ratio of the amount of capital to the required margin. It also gives you the ability to increase your trading capital with a relatively small deposit, the margin.

By using a leverage of 1:100 for instance, every $1 you invest is worth $100, and with your $1000 margin, you can open $100,000 lots. For example, if the EUR/USD rate moves up 100 pips from 1.1100 to 1.1200 and you had invested $1000, you would have made $10 on that trade. But, with leverage, your $10 profit will be magnified to $1000 instead.

Because profits and losses are calculated on the total size of the position, so losses may be exceeding the initial deposit. Thats why leveraged forex trading is a double-edged sword. So, it is important that forex traders know how to manage leverage usage and adopt a strictrisk managementplan to mitigate potential losses.

How to Start Forex Day Trading？

• Open forex accountto start trading now or practice risk-free with virtual funds on our demo account.

• Research the forex market and educate yourself withfundamental analysisbasics.

• Enhance your knowledge of markettechnical analysisby studying price charts and technical indicators.

• Follow a strict risk management plan that involves using stop-loss orders in order to protect your capital.

Features of Trading Accounts from aximtrade:

• Variety of account types including Standard, Cent,ECN, Islamic, and Infinite Leverage Account

• Excellent customer service reachable through email, live chat, and more

• Tight spreads and low minimum balances reduce financial commitment

• Fast order execution with execution speed at 0.004s

• Minimum deposit of $ withdrawal 1 and no commission

• Instant deposit and, a wide variety of payment methods

aximtrade is a fast-growing brokerage service provider in the global markets with a highly advanced MT4 execution and Copy Trade platform. One of the core values of AximTrade is to enable forex traders with easy-to-use technology, educational resources, technical analysis, varieties offorex bonuspromotions, and a highly competitive trading environment with the best trading conditions.