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