Frankly, and I'm gonna say this because I know how it is. Trade size, and lose money you can afford. You're gonna lose it, whatever happens. Because trading $1000 is pointless, whacha gonna make, .25 per tick? By the end of the day you'll be kicking yourself in the balls to feel the pain usually associated with a losing position. Be a man. Blow up a couple of times, but blow up relatively small. Trading is not only HOW or WHAT you trade, it is what happens to you when you enter the trade. If it's too small to be important to you, then it's pointless.
mini account is a good way to test your system, and to practice your psychology... much cheaper to practice this way versus regular account in my opinion.. also a good benefit is to test your money management strategy, which is by far the most important. Andy
With a mini Forex trade how much US $ is a trade worth from say 1.11670 to 1.11710? How many pips is this? As you can see I am a complete in the dark newbie about Forex...
First of all, most currency pairs are quoted to 4 decimal places. A pip is simply the last decimal place. In the case of EURUSD, 0.0001 is 1 pip. Some traders such as myself also call pips as points. 100 pips/points is called one big figure. I don't trade the minis, so I'm not exactly sure how much that is. But I believe it is 10,000 units of the base currency. To calculate the pip value, just multiply the lot size by the value of the value currency. For example, assuming the mini on EURUSD is 10,000 units, one pip = 10,000 EURs * 0.0001 USD/EUR = 1 USD.