Trading on cent accounts

Ted Capwell 110 Updated:

In this article, we will examine the benefits that can be gained from working on a Micro account from a broker company Weltrade.

So, start by registering an account on the company website. If you are already registered, then just go to your personal account. In order to open a trading Micro-account, you need to select the type of account “Micro” on the tab “Trader”. The main characteristics of this account will be presented in front of you on the monitor screen, three of which you have to choose directly: in the line “Platform” select “MT4”; in the line “Account currency” select USD and in the line “Leverage” choose 1: 1000.

And to start working on a Micro account, you need to replenish it with at least $ 25.

What are the advantages of working on a Micro account? If you are a beginner trader who begins to build his strategy, then a Micro-account will be an ideal start for you to work in the Forex market. Why? The answer is simple – all your risks in open transactions are divided by 100. That is, if you open a transaction in the amount of 0.01, then on a standard account it will be displayed as 0.001 lots.

When opening a transaction, it is possible to calculate the cost of one point in your chosen currency pair. To do this, use the “Calculator” on the “Trader” tab.

Using this tool, you can calculate not only the cost of one point, but also the size of the swaps, as well as the margin of the position for various instruments. To do this, on the page “Trader’s calculator online” select the type of account “Micro”, the tool – “EUR / USD” and click “calculate”.

Next, you need to open a real Micro-account to calculate possible losses or profits by positions, using ATP. To do this, go to the “file” section – “connect to the account”. The data for entering MT4 (micro-account number and trading password) is in a letter from Weltrade.

Let us dwell in more detail on the ATP indicator – what is it and what is it for? This indicator shows how much the average currency pair has passed points over a certain period of time.

Let’s look at an example of how this works. On the “List of indicators” tab, click “Oscillators” and select the period of interest to us, for example 14 days. After analyzing the calculations, we see that the EUR / USD currency pair per day passes 56 points on average. Further, we can calculate the amount of losses at different time intervals – for a day, week or month.

Let me remind you that at the beginning of the article it was announced that the cost of one point is $ 0.01. And then they calculated that the permeability per day is 56 points. If the EUR / USD currency pair goes against us throughout the day, week or month, the calculation algorithm will be as follows:

1. For 1 day – permeability per day is multiplied by the value of the point: 56 * 0.01 = 0.056. This means that if the market goes against us for 1 day, then the loss will be 0.056 cents of the deposit amount.

2. For 1 week – the daily loss is multiplied by the number of working days of the week: 0.056 * 5 = 0.28 cents.

3. For 1 month – the weekly loss is multiplied by the weeks of the month: 0.28 * 4 = 1.12 dollars. It turns out that if the market goes against us throughout the month, the loss will be 4.5% of the total deposit.

But, I want to reassure that when working on a cent account, the opportunity to lose money is minimal.

Open an account with Forex broker Weltrade and start earning today !