Knowing the essential factors of options market

0Forex trading does not require so much investment as we think. A beginner can start this profitable money earning business from their home in a little amount of deposit. But he should keep in mind that option trading is not easy and he should be careful about it with the proper wealth management strategies. Here in this writing, we will discuss the least investment process in the platform and ways to save our trading account from getting wiped out.


A trader can make at least $10 deposit in the Forex account with the help of a broker. Even some brokers offer zero dollar investment in the beginning. It becomes possible as a broker has the power to provide leverage opportunity to his client. Taking leverage helps an investor to get the power of $100 investment even in $10. This strategy works in 1:10 ratio that means if you invest $100, you are getting the power of $1000 investment.

But one thing beginners should keep in mind that leverage has some dark sides too as it increases the risk to a greater extent. They should realize the fact that they are taking the leverage as a loan from the broker. If they make a loss, they have to return the money from their real account, which may result in getting account zero sometime. When account balance gets empty, the account gets wiped out in few days. So, in learning stage, use demo account from Saxo Bank so that you don’t have to risk any real money.

Without depositing the right amount can destroy the trading career as the possibility of the loss is huge in the FX market. We should invest the lion share of our money on this platform at the beginning. Because without proper knowledge about the marketplace, it is really tough to sustain here. Study shows that newbies use so much wealth to buy financial instruments and keep their account empty. Later, when they find an opportunity, it becomes so tough for them to grasp that.

Estimating risk management

Before investing money on any type of business, we should do the math of profit and loss. A beginner should count how much he should deposit and why he will deposit there. Expert traders use 1:3 ratio for their risk management to get the prediction about their trading in advance. An investor should not take the risk more than one-third of his profit because taking more is regarded as a bad practice which can kick them out from the FX career.

Stop profit order

After investing on the currency pairs, a trader must set a stop profit order. This feature will help him to close his trade automatically as soon as his goal is fulfilled. Most of the greenhorns do not care about the settlement of a stop profit order and lose their money twice in amount when a sudden downtrend occurs.

Setting a stop profit point

Throwing money on something is easy if you have abundance, but it is really togher to deposit wisely. Taking care of the invested wealth may seem the toughest step if stop-loss order is not set by the trader. Without having this great feature, FX trading would really be so much time consuming as the traders had to sit in front of the computer screen hours after hours. If this type of inc0ident really would happen, getting the right trade, investing in it, waiting for its closing at the right time manually could be impossible. Stop-loos order has removed these types of headaches and made the trading more enjoyable with the automates process.

Therefore, we can say that investment in Forex can be proved as a boon for an investor if he can manage his money even after the deposit. Otherwise, a person without having patience must be away from it as Forex market may seem addictive for them to waste a huge amount of money repeatedly.