How to Trade Forex With 20 USD

If you have a relatively small account and are looking to learn how to trade forex with 20 USD, there are some simple things you can do to make it work for you. Using the 1:2 risk reward system limits your risk to 2% of your total account value, which leaves you with 980 USD of free capital. This rule reduces your risk to 1%, which is a lot less than you might think. To avoid losing your money in the forex market, make sure you are disciplined and patient.

The leverage that you can use with a $20 forex trading account is 100:1. This is the same leverage professional forex traders use, so you can effectively use this amount to your advantage. In other words, with a 100:1 leverage, you will have a $2000 trading capital if you invest only 20 dollars. 100:1 leverage means that the brokerage will give you one hundred dollars for every dollar you deposit. This means you can trade $100 with $20 and make $20,000 in just three months.

Micro lots are smaller than mini lots. They are equivalent to 1,000 units of base currency, or $0.10 per pip. In the case of the EUR/USD, this means that you ll need a stop-loss of 20 pip to lose 10% of your account. A micro lot requires only 2% of your account value to trade. With these small amounts, you ll be able to trade for much longer. But it s important to remember that your account size should be reasonable and within your budget.

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