XAUUSD Account Meaning - 2 Types of XAUUSD Trading Accounts
In recent years retail xauusd has grown hugely in popularity and the demand for different types of gold trading accounts has also grown. There are many different xauusd account types available to any xauusd trader who wants to trade and participate in the online xauusd market.
The xauusd market is a highly leveraged market for speculating on xauusd gold instrument valuations. XAUUSD traders can purchase large amounts of xauusd units using leverage - XAUUSD Leverage is what makes xauusd trading attractive to many online xauusd traders - with xauusd leverage a xauusd trader can make more profits or losses because they use less of their capital and borrow the rest.
There are different types of xauusd accounts available to help investors better manage their xauusd account capital as well as their xauusd trade transactions.
How a Real XAUUSD Account Looks Like
It is therefore important that the xauusd traders consider what they want to get out of their xauusd trading, before deciding on the gold trading account type to open.
Below is a comparison of the two types of xauusd accounts commonly used to trade xauusd. The xauusd account types review below explains the different features of each of the two types of xauusd accounts.
Standard XAUUSD Accounts Types Explained
XAUUSD Account Meaning - Standard XAUUSD Trading Account. A Standard XAUUSD Trading Account is denominated in US Dollars and xauusd trade transactions are placed using standard lots. One lot is also known as a one contract. Minimum opening capital - at least $10,000 USD.
1 contract refers to the minimum size of a single xauusd trade transaction. This xauusd account option is the most suitable for xauusd traders with enough capital to invest in xauusd - this xauusd account option requires $10,000 to $50,000 dollars in starting capital, For this standard xauusd account the xauusd trader will not be undercapitalized and with good xauusd money management rules and xauusd money management strategies, this standard xauusd account option has the best chance for profitability because it is not undercapitalized. Under capitalization is what makes most xauusd traders in xauusd not profitable.
It is not recommended to open a standard xauusd account unless you have an account balance of at between $10,000 minimum and $50,000.
Professional Money Managers recommend $50,000 Dollars minimum to open this standard xauusd account and only opening trades with only 2% of the trading capital you have in your xauusd account. However, most online xauusd brokers will still open this standard xauusd account for you if you have more than $10,000.
With xauusd leverage of 100:1, you will borrow from your xauusd broker (with xauusd leverage of 100:1, your xauusd broker gives you $100 dollars for every $1 dollar that you have in your xauusd account, therefore if you have $1,000, the xauusd broker will give you $100 dollars of xauusd leverage for every $1 dollar you have, meaning after xauusd leverage you will have $1,000*100=$100,000 which you can then use to trade xauusd).
Micro XAUUSD Accounts Types Explained
XAUUSD Account Meaning - Micro Gold Account. Micro XAUUSD Accounts use lot sizes of only equivalent one-hundredth that of a xauusd standard lot. These Micro xauusd accounts are often appropriate for xauusd traders without a lot of xauusd capital and can sometimes be opened with only a $5 minimum balance.
This Micro xauusd account option allows the xauusd trader to open trades in micro lots. 1 xauusd micro lot is one-tenth of a xauusd mini lot and one-hundredth of a xauusd standard lot.
This Micro xauusd account option is generally best suited for xauusd account equity balances that are between $1,000 and $5,000
In xauusd trading, one xauusd standard lot is the standard transaction minimum of a given xauusd instrument traded in the gold market. But many xauusd brokers offer fractions of this xauusd standard lot to enable more retail gold traders to access the gold market. Being able to offer xauusd micro lots reduces the minimum xauusd trade transaction size thus giving the xauusd beginner traders and also those xauusd retail traders without a lot of xauusd capital to start trading and get a feel of the xauusd market without investing a lot of xauusd capital.
There is learn xauusd online tutorials that a xauusd trader can read even before opening a real xauusd account, and to get extra practice in xauusd trading before opening a real xauusd account a beginner xauusd trader should open a practice XAUUSD Trading demo practice account with a xauusd broker - so as to practice placing xauusd trade transactions and also learn about the xauusd trading platform software before opening a real xauusd account and investing with real money.
During the xauusd training period a beginner trader will be using the xauusd demo practice trading account, the beginner xauusd trader will learn the key factors needed to succeed in xauusd such as: xauusd trading bascis education, xauusd money management rule, xauusd plan and xauusd trading systems.
The types of xauusd trading strategies used and the skills required for any of these 2 xauusd accounts are essentially the same - those xauusd skills and xauusd strategies required for the Standard xauusd account or Micro xauusd account are the same the only difference to be adjusted are the xauusd money management rules for each xauusd account type.