Does the benefit of the size of invested capital?

The size of invested capital plays a major role in determining the amount of benefits to which a trader can hope for in the online Forex trading currency. Do not hope that, having invested $ 200, you get 20 000 quickly and easily. The main obstacle to this is the inability to cover the costs of tendering, in other words, the trader will not trade big lots, because he / she quickly end margin. And if you exceed the limit of the margin, you get feedback.

Working in Forex, the first thing that a trader should do - protect your investment capital. This is possible only under one condition: if a trader skillfully manages risks, and they do not exceed a reasonable percentage of the insurance deposit, which are at risk.Size reasonable risk ranges from 2% to 4% of the size of the deposit.

If a trader wants to get a greater benefit, he should sell big lots, the size of 100 000 units. But in order to sell these lots, you need a big starting capital of at least $ 20 000, because if pip is worth on average $ 10, you will not want to risk losing $ 200 only because of the small fluctuation in the 20 pip.

Smaller lots require a smaller profit, but also less loss.