Commodity Trading Account and Trade Equity Capital Management
If you are a trader wanting to open a live trading account & you're doing some research online to find out one or two things before opening, then you have come to the right training web site.
Open a live account is different than opening a practice. First as a trader you don't have unlimited money, maybe you only have $1000 dollars or $5,000 or $10,000 or you are rich and have $50,000 dollars to open one and start with.
First thing you need to select is the commodity leverage you will be trading with, if you are good in commodity trading you can choose 100:1 commodity leverage if not then choose 50:1 commodity leverage if you have not practiced with a demo then choose 10:1 commodity leverage. The other thing is that even though you choose 100:1 commodity leverage for your account: this does not mean that you will trade with all the 100:1 commodity leverage, you will only use 5% of these commodity leverage & only open trades with a maximum of 5:1 commodity leverage. The remaining commodity leverage will be used to maintain what is known as free margin; money required by a broker so as to maintain your open trades.
The other thing to know is what type of account you are going to open, depending on your capital you want to begin with:
If you have $1000 dollars or less
Open a micro commodity account - with $1000 dollars it is best to only transact with micro lots, forget what your commodity broker tells you, anything bigger than micro lots will only increase your risks to levels which you do not have enough capital for - Minimum Deposit Commodity Trading Brokers Accounts - Brokers with Minimum Deposit Commodity Accounts. If you want to keep your money and make profits with this micro commodity account trade on micro lots.
If you have $10,000 dollars
Open a mini commodity account - with $10,000 dollars you can open a mini commodity account and transact only mini lots. Trading mini lots on a $10,000 capital is enough capital to allow you to trade & make profits without taking too much risk.
If you have $50,000 dollars or more
If you have $50,000 dollars or more then you have enough capital to open standard lots, & you can open a standard commodity account. With $50,000 dollars then your capital is enough to trade standard lots without much risk to your capital. However, make sure that you have read this tutorial: commodity money management and commodities trading money management methods.
The other thing to know is that to open a live account you've to send to send to your commodity broker a copy of Government Issued ID card & a copy of utility bill showing your physical address. Some traders are surprised when asked for these documents, but all traders send them before opening their account, it is a requirement by all trading regulators that requires regulated commodity brokers to get these documents before accepting a deposit from anyone. Also make sure you choose a regulated commodities trading broker that way your money is safe.
