funds required to trade
Most people who want to take their first steps to enter the world of trading and investment through the financial markets have many questions, the most important of which is how much capital do I need to trade? Or what is the amount required to start trading?
What is the concept of capital?
The capital is the amount that the trader will deposit with one of the brokerage firms in order to be able to trade with them, and the balance is often in US dollars, and one of the main attractions that push many novice traders towards the forex market is the lower entry requirements compared to other financial markets such as the stock market. Stocks, the indices market, commodities and others,
and we read and hear everywhere about how people achieve profits in millions of dollars, and also how trading in forex requires depositing money to earn money. You then that high profits will overwhelm you! But of course, things are not that easy.
One of the important things to know how much capital you need to start trading is to know the opportunities available in the market first, the forex market is open 24 hours a day, 5 days a week and contains many pairs that move up and down and in random movements, and each currency pair is affected with certain economic news and has its own kind of energy, it pushes you to trade more.
The trading strategy also plays a major role in determining the appropriate amount of capital to trade effectively and succeed in the forex market, whether it is day trading, medium-term trading or long-term trading. They take the risk to get the largest possible amount of leverage, as they can open large-sized trades using a small portion of their capital.
Some expert traders say that the minimum capital required for forex trading is $10,000 but that does not mean that you cannot start with less than that, of course the appropriate amount of capital depends on your trading style and capital management requirements and not risk more than 2.5-5% of your account balance per transaction.
What is the minimum deposit at TNFX?
TNFX offers 5 types of various trading accounts, and they differ in the initial deposit for each of them After the first deposit, you can deposit starting from only $10 Let’s get acquainted with the five accounts:
?Standard Account = $300
It is the ideal account and interface for every trader, featuring a deposit bonus.
? Cent Account = $100
It is the most suitable account for professional and novice traders alike, who want to gain experience and master trading strategies, and you can open as little as 0.001 lot.
?FIX Account = $500
It is the safe account for traders and is considered important for people who adopt a hedging or scalping strategy. It is characterized by fixed spreads for pairs and metals.
?Zero Account = $500
It is the account that allows you to increase your profits and forecast your revenue more accurately, with very low spreads and zero spreads for EUR/USD – USD/JPY.
?VIP Account = $100,000
It is a premium account with very low spreads, suitable for VIPs and trading professionals who want to invest in the long term.
It may take a few years of profitable trading to be able to turn $1,000 into $10,000 but a trader who manages to make a monthly profit of $100 using his small balance will at least in theory be able to make $1,000 a month when his capital goes up to 10,000 $ Using premium and professional money management methods can keep you in trading for longer but it does not protect your account from losses, even if you use the best money management strategies on earth your lack of knowledge and experience will slowly exhaust your account.
The rule of thumb in this world is that great profits start slow and then increase at an accelerating pace so no matter how much capital you intend to start with, the main approach to working in the forex market remains discipline, patience and belief in your ability and the ability of your chosen trading strategy to succeed. It will depend entirely on the trading method and the number of trades that you will open during the day or month, and you are always advised to start with a demo account, and here most traders wonder,
How long will training take in the demo account and when can I switch to the real account?
The answer to this question is “more period than you think” Education period does not have a specific time, it varies from person to person, the length of the trial period depends in part on the time frame you are trading on, long term traders whose trades take several weeks or months need to Spend more time in demo trading than a day trader who only holds his trades for a few hours or days.
Thus, if you have an amount of money in your account, do not risk the whole amount in forex trading, trade a small part of it until you gain the knowledge and experience required for the system that allows you to win in this difficult market. When you trust your experience and your system, you will have an additional spare amount that you can use and start earn profits.