Friday, January 14, 2011
Minimum deal sizes
Another concern, particularly for smaller accounts, is minimum deal sizes. Some brokers only allow you to trade standard lots (100,000), which does not give someone with a $5,000 account very much flexibility when it comes to money management. Money management is a very important aspect of any trading strategy, and the finer “resolution” you can get when calculating deal sizes, the more accurately your money management calculations can be reflected in reality. This is an often overlooked or at least underestimated factor when it comes to choosing a broker, but it is absolutely critical. The best choice for small account holders are the brokers that offer traders deal sizes as small as 1 unit, giving traders maximum flexibility when choosing the size of their trades and positions.
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