The currency trading market consists of new traders as well as experienced traders. While the experienced traders open their currency trading account and trade their currencies easily. But, the beginner traders have to open their demonstration account first to get acquainted with currency trading. Exclusively for beginners, the Micro account is designed for training them to trade without the help and is typically used as an intermediary when transferring from demonstration account to “Standard” account. It is possible to trade most accepted currency pairs with set spread and towering leverage on accounts of this group.
Features of currency trading micro account
21 currency pairs
$5 minimum deposit
Fixed spread of 2 pips
Minimal lot 0.01
Leverage up to 1:500
Maximum lot 10 with step 0, 01
Automatic trading is allowed
Maximum number of open positions and pending orders 100
Level of the margin call and stop out is 40 percent and 20 percent respectively.
Owing to the increased currency trading market instability, on “Micro” accounts spread for some currency pairs can be increased during significant financial and political news. In the micro trading account an hour prior to closing of the market closing the levels of margin call and stop out can be raised up to 200 percent. So the traders have to be careful with positions that they leave for the weekend.
Operating time of the micro account
Micro account can be operated throughout the day and a week starting at 00:00 on Monday and closing at 22:00 on Friday. Lot – capacity unit of the instrument which is employed to carry out a transaction, it is equal to 100 000 base currency pieces. Level of limit and stop orders denotes negligible interval between existing price and awaiting order level. Within the interval stop-loss, take-profit and pending orders cannot be entered. When entering orders within the range, server will give a fault message and will not recognize the order. Stop and limit order level is identical to typical spread.
The freezing level is inhibiting to adjust orders which are near to the currency trading market. Customizing, removing and closing of positions, that are yet to be implemented, are prohibited. The freezing level is equivalent to 1/2 typical spread. The position overnight move is performed as currency market swaps and the swap size is reproduced in points. Swaps can be optimistic and pessimistic and are computed as variation between interest rates. Swap is charged every day at 00:00 in accordance with the operating time of the server. Swap is charged three times more from Wednesday to Thursday. Swap rate is a product of the number of lots, point price and number of days.
Margin call and stop out
Margin call is the forewarning level that appears when ratio of finances to vow turns out to be lesser than the allowed price. In this case that trader has a right to lock one or more than a few positions of the customer in accordance with the conditions of the currency market. Stop out is the insolvency level that takes place when the ratio of finances to vow turns out to be lesser than the allowed price. In this case that trader has a right to lock one or more than a few positions of the customer to avoid the negative balance on the account.
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