Silver Accounts Types Explained
XAGUSD Trading Accounts Examples
In recent years retail silver trading has grown hugely in popularity & demand for different types of xagusd trading accounts has grown. There are many different xagusd trading account types available to any silver trader who wants to invest in the online silver market - Silver Account Explanation.
The silver market is a highly silver leveraged market for speculating on xagusd trading price valuations. Silver traders can purchase large amounts of silver trading units using leverage - Silver Trading Leverage is what makes silver trading attractive to many online silver traders - with silver trading leverage a trader can make more profits or losses because they use less of their capital & borrow the rest.
There are different types of xagusd trading accounts available to help investors better manage their silver trading account capital as well as their silver trade transactions.
How a Real Silver Account Looks Like
It is therefore important that the traders consider what they want to get out of their silver trading, before deciding on the xagusd trading account type to open.
Below is a comparison of the two types of xagusd trading accounts commonly used to trade silver. The xagusd trading account types review below explains the different features of each of the types of silver trading accounts.
1. Standard XAGUSD Accounts Explained
Silver Trading Account Meaning - Standard XAGUSD Account. A Standard Silver Account is denominated in US Dollars and silver trade transactions are placed using standard lots. One lot is also known as one contract. Minimum opening capital - at-least $10,000 USD.
1 contract refers to the minimum size of a single silver trade transaction. This silver trading account option is the most suitable for silver traders with enough capital to invest in xagusd trading - this silver account option requires $10,000 to $50,000 dollars in starting capital, For this standard xagusd trading account the trader will not be undercapitalized and with good silver money management guidelines and silver money management strategies, this standard silver trading account option has the best chance for profitability because it is not undercapitalized. Under capitalization is what makes most traders in silver trading not profitable.
It is not recommended to open a standard silver account unless you've an account balance of at between $10,000 minimum & $50,000.
Professional Money Managers recommend $50,000 Dollars minimum to open this standard xagusd account and only opening trades with only 2% of the trading capital you have in your xagusd trading account. However, most online silver brokers will still open this standard xagusd trading account for you if you have more than $10,000.
With silver trading leverage of 100:1, you will borrow from your silver broker (with silver leverage of 100:1, your silver broker gives you $100 dollars for every $1 dollar that you have in your xagusd trading account, therefore if you have $1,000, the broker will give you $100 dollars of silver leverage for every $1 dollar you have, meaning after silver leverage you will have $1,000*100=$100,000 which you can then use to trade silver).
2. Micro XAGUSD Trading Account Explained
Silver Trading Account Meaning - Micro Silver Trading Account. Micro Silver Trading Accounts use lot sizes of only equivalent one hundredth that of a silver trading standard lot. These Micro xagusd trading accounts are often appropriate for silver traders without a lot of silver capital & can sometimes be opened with only a $5 minimum balance.
This Micro silver trading account option allows the trader to open trades in micro lots. 1 silver trading micro lot is one-tenth of a silver trading mini lot and one hundredth of a silver trading standard lot.
This Micro silver trading account option is generally best suited for silver account equity balances that are between $1,000 & $5,000
In silver trading, one silver trading standard lot is the standard transaction minimum of silver instrument traded in the xagusd trading market. But many silver brokers offer fractions of this silver trading standard lot to enable more retail xagusd traders to access the xagusd trading market. Being able to offer silver trading micro lots reduces the minimum silver trade transaction size thus giving the beginners and also those silver traders without a lot of silver trading capital to start trading and get a feel of the xagusd trading market without investing a lot of silver trading capital.
There are learn silver trading online tutorials that a trader can read even before opening a real xagusd trading account, and to get extra practice in silver trading before opening a real silver trading account a beginner silver trader should open a practice Silver demo trading practice account with a broker - so as to practice placing silver trade transactions before opening a real xagusd trading account and investing with real money.
During the silver trading training period using the xagusd trading demo practice account, the beginner silver trader will learn the key factors needed to succeed in silver trading such as: silver trading education, silver trading money management, silver trading plan & silver trading systems.
The types of silver trading strategies used and the skills required for any of these 2 xagusd trading accounts are essentially the same - those silver trading skills and silver trading strategies required for the Standard silver trading account or Micro silver trading account are the same the only difference to be adjusted are the silver money management guidelines for each xagusd trading account type.
