Trading on any of the exchanges requires a fairly solid capital, but you can try to make money on Forex without having a big amount on your account. Of course it is not a question of a couple of dollars, we mean a deposit of a few hundred.
Beginners are usually interested in the question: is it possible to earn money on Forex with a small deposit?
To be completely honest that it can be answered as follows: to earn - no, to make - yes. That is, all will depend on many factors, which are quite not simple to calculate and take into account.
For earnings with a small deposit you will have to use a big leverage, usually its size in this case is 1: 100 and more. So you can not use most of the popular trading strategies because the open position will have little support.
You will also have a limited lifetime of the transaction: orders should be closed at the first sign of adverse developments, otherwise you can lose even the small amount of funds, which is available in your account.
Now we turn to the actual characteristics of such kind of forex trading.
1. The minimum amount required - from $ 100.
2. Recommended leverage - 1: 200.
3. Volume - for deposits starting from $ 100 it’s 0.1 lot or 10 000 units of base currency.
4. Recommended currency pair – EURUSD (as it has the lowest operating costs and dynamic trend).
5. Take Profit - 10 points with four-decimal quote.
6. Stop Loss or manual completion of the transaction - 5 points.
7. Time frame - one minute M1.
That's almost all main conditions for earning on Forex with a small deposit. We know the examples of those who, using this strategy, earn about 30 dollars a day. Of course, you can increase the amount on deposit and the volume of trade. Accordingly, your profit will grow too.