Contract Sizes

Most people start with a demo account to get familiar with Chinese forex and they are wise to do so, because the practical experience that you gain this way is vastly superior to anything you can learn about. Theory places an important role in the initial training, but unless you combine it with a simulation of the real thing then it can be all in vain. Once this is dealt with, people are reluctant to start spinning the big money and will look for contract sizes that are smaller.

What this means is that they will prefer a lot that is lower than the standard one traded in forex and resort to mini or micro accounts. Chinese Forex offers them and instead of trading a lot of $100,000, they will operate with ones of only $10,000. Add to this the benefits of leverage which makes it reasonably priced for people who wouldn’t otherwise afford even these contract sizes. By combining the advantages of the mini account and the leverage you could wind up investing something like $200 and trade a mini lot of $10,000.

In order to reduce the risks greatly and prevent the unfortunate situation when you will lose more than you can afford and have to pay extra cash to your broker the fail-safes are in place. These are very popular among Chinese forex, because the margin calls will close all positions automatically. It is calculated by using the equity of the trader and the margin move, regardless of the contract sizes.