Resolved Question
Any reason to move from micro account to standard?
I got a micro account right now and since I trade on 5m timeframes I usually place at least 20 lots per position and often 40+.
I'm just wondering if there is any reason later to move up to standard account, Since even if I got example $10,000 on my micro I can just place like 200 lots instead of 2 standard lots.
Also same question in reverse, Whats the reason to pick a micro account since instead of placing 40 micro lots I could just place a 0.4 standard lot.
over 2 years ago
Best Answer - Chosen by Asker
The percentage of your account risk per trade depends on what kind of account you have. For instance, you risked 1% of your standard account on a trade, that would translate mean a 10% risk if you had a micro account.
Some traders like to have multiple positions open on different pairs. If a trader of a standard account had 5 trades with 1% risk each, his total risk is only 5%. If the same trader had a micro account with the same position size, his total risk would become 50%. If his trades don't go his way, I bet he'll get margin called!
over 2 years ago
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BonnieMahiFX
Indeed. Micro accounts limit exposure and are a great way to familiarise with live trading, particularly for those making the transition from demo trading. Standard accounts take it up a notch, and only really for those with a substantial trading capital and developed trading skills.
4 months ago
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