In this article, I would like to tell you about the cent account.
How it is useful for a trader and when it is simply impossible to do without it.
When you hear the word cent, you may think that this is something for the poor, and you want to open a regular type of account, but do not rush into decisions.
In this article, I will tell you when a trader simply needs to open a cent account, as well as how a cent account can save your deposit and allow you to trade better than on a standard one.
The average forex deposit is $100 – $500.
And 1 lot on EUR/USD is equal to 100,000 EUR, well, speaking in human language, where will you climb with your $100.
Since the position is open, let’s say open with 0.1 contract, when the price moves 150 points by 4 digits, it will give you a loss of about $150.
That is, it will destroy your deposit completely.
For example, only today, 03/15/2022, there was a movement of 223 points in EURUSD, in a couple of hours, if you opened a position of 0.1 lot with a deposit of $200, your account would have been blown up by the end of the day.
Therefore, a cent account was created just for those who have small starting capital and want to correctly calculate risks.
In a cent account, your $100 has already turned into 10,000 cents, which is not bad at all.
For this amount, you can open trades with a correctly calculated risk and launch a trading robot on several currency pairs.
Speaking of risk assessment
I want to tell you a little about my product EasyTradePad
For those who want to automate their trading, namely risk calculation
I created the product EasyTradePad trading panel allows you to easily calculate the risk, open orders in one click, works for FOREX, STOCK, CRYPTOCURRENCIES. In MT4 and MT5 terminals, all links are in the description.
Let’s continue the review of the cent account. And so on a cent account, when opening a position of 0.1 lot, your risk for SL of 150 points will already be only 150 cents or $ 1.5, which will allow you to calmly sit out volatile days without risking your deposit.
Earnings that on a cent that on a regular account will be the same.
Your goal is to learn how to trade correctly, and you can easily attract money for your account in the future with the help of investors.
Let’s summarize when exactly it is better to use the cent account type:
- when your capital is less than 10 thousand dollars and you want to use averaging / martingale in trading
- your account is less than 1000$ and you would like to trade many instruments manually with money management
And so I hope the information was useful, be sure to use it in your trading.
If you liked the article, please leave a comment!
So in the comments, write if you use a cent account in your trading, see you in new articles, bye.