We at COFX give our clients the choice of how they wish their accounts to be determined. Questions of leverage, margins and account size are all up to the client. However this is a freedom that only benefits the experienced trader who has been in the market and knows his personal limits and abilities very well.

Our traders can trade from 0.01 of a standard lot size without any restrictions. A standard lot traded in the Forex market is a $100,000 contract. In other words, when trading one lot in a standard account, a trader is essentially placing a $100,000 trade in the market. Without leverage, most investors would not be able to afford such a transaction. Leverage of 100 1 would allow a trader to place the same one lot ($100,000) trade with an initial deposit of $1,000 in margin. $100,000 divided by 100 equals $1,000, thus 100 1 leverage means that $1,000 of margin is able to trade a $100,000 position.

Many Forex traders today begin their trading in a Mini account. Because standard contracts in the Forex market are rather large

Mini accounts are essentially 1% the value of standard accounts, meaning that mini contracts are $1,000. A trade of one mini lot would be a $1,000 trade, whereas a standard lot is of course a $100,000 trade. It is not unusual for brokers to offer higher leverage in mini accounts, 200 1 is very common. Trading with 2001 leverage would mean that $5 of margin would control a $1,000 contract.