How Can I Open a Cent Account? - Forex Account Opening Cent Account
There are numerous different types of accounts available to anyone who wants to invest in market. Forex market is a highly leveraged market for speculating on currency valuations. Traders can purchase large amounts of currency units using little capital. However, trading on leverage is risky and there are different types of accounts available to help the traders better manage their trading risk.
It is hence important that the trader consider what they want to get out of their trading account, prior to deciding on the account type to open.
Cent Account
FX cent account use lot sizes of only 100 currency units. These accounts are often appropriate for a beginner trader. The risks for this trade size are low & these cent accounts can sometimes be signed up with only a $10 minimum account equity balance.
A Forex cent account is generally used by novice traders who wish to experience a live environment without risking a big amount of money. Cent accounts allow a trader to trade in cent lots. 1 cent lot is one - tenth of a micro lot & one-hundredth of a mini lot.
If an exchange rate for EURUSD is quoted at 1.400, then the smallest trade available in a cent account is worth $140 of currency to buy 100 EUR. Cent accounts are generally best suited for account balances which are between $100 and $1,000.
Cent account 1 pip = $0.01
