How much money should be deposited in a real account?

No comments

You need to take this decision based on the trading strategy that you wish to connect to. Every strategy has an indicator, which shows the minimum recommended amount of money. The amount must be available on your brokerage account so that the rules of money management applied by a strategy provider on his or her account are met. The recommended minimum amount was calculated in such a way so that trades of 0.01 lots (the minimum contract size) can be made (1 000 units of the base currency).

Recommended minimum

If amount of money available on your brokerage account is less than the “Recommended minimum” value, then you take a risk of a Stop-Out (forced closing of positions due to lack of funds on the trading account) level to be hit early. At that, a strategy provider will keep on trading as before.

If you copy a trading strategy with a fixed contract size of 0.05 lots, you need to have 5 times more funds on your brokerage account than the value specified in the “Recommended minimum”.

Should you have any questions, ask them in the comments below.

No comments

Your email address will not be published.