Mini Trading Account
FAQs
Answers to Frequently Asked Questions
How can Currencyland offer smaller trading sizes?
Smaller trade sizes pose several challenges to foreign exchange firms. There are two primary issues that have prevented firms from offering smaller trade sizes: high labor costs and risk management. To offer smaller trade sizes, most firms would have to hire more dealers, which would make the cost exorbitant. the Currencyland Mini account features automatic execution for most accounts. All trades are executed without human intervention (just like a demo account). This keeps labor costs low. The second issue is risk management. The smaller size trades offered on the Currencyland Mini account are difficult to offset in the broader market. Currencyland has developed a proprietary risk protocol for the Currencyland Mini, which involves aggregating volume into sizes that can be offset in the broader market.
What is the difference between the Currencyland Mini account and a regular account?
the Currencyland Mini account is designed to introduce traders to the excitement of trading currencies online and for those with limited investment capital. With a Mini account, you trade using the same platform as our regular traders. With as little as $300, a trader can open a Currencyland Mini account and begin trading foreign exchange with CurrencyLand. On the Mini trading platform all trades are executed in standard sizes of 10,000 base currency per one lot, 1/10th the size of a regular account. The smaller trade sizes enable traders to take smaller size risks.
How does the Margin Call work?
If the equity balance in your account falls below the margin requirement of 1/2% per lot, a margin call will be generated. In the event that an account exceeds its maximum allowable leverage, ALL open positions will be liquidated immediately, regardless of the size or the nature of positions held within the account. For example, a Currencyland Mini account with 8 lots in open positions would need to have 1/2% of the total position value in account equity. If the account equity falls below 1/2% of the position value due to floating trading losses, the entire 8 lots would be liquidated at market price. Clients are not notified prior to the liquidation of their positions.
Do you Charge a Commission on the Mini account?
No. Currencyland charges no commission or transaction fees to trade an Currencyland Mini account. As the leading player in online currency trading, Currencyland receives and is able to pass on the benefits of size to our clients. Currencyland is compensated for its services through the bid-ask spread.
How Do I Switch from a Regular Account to a Mini account?
In order to change from a regular account to a Mini account, or a Mini account to a Regular Account, you can request a change of account type through us.
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