Most people who want to take their first steps to enter the world of trading and investing through the financial markets have many questions, the most important of which is how much capital do I need to trade? Or How much is required to start trading?
What is the concept of capital?
Capital is the amount that the trader will deposit with one of the brokerage companies so that he can trade with them, and the balance is often in US dollars, and that one of the main attractions that push many novice traders towards the Forex market is the low entry requirements compared to other financial markets such as the stock market, the index market, commodities, etc.,
We read and hear everywhere about how people make millions of dollars in profits and also how Forex trading requires depositing money to earn money, and some advise you to deposit a large part of your savings in your account in the trading company to buy the latest and largest index or expert and then assure you that high profits will overwhelm you! But of course things are not so easy.
One of the important things to know how much capital you need to start trading is to know the opportunities available in the market first, the Forex market is open 24 hours a day for 5 days a week and contains many pairs that move up and down and in random movements, and each currency pair is affected by certain economic news and has its own kind of energy that pushes you to more trading.
The trading strategy also plays a major role in determining the appropriate capital size to trade effectively and succeed in the Forex market, whether it is daily trading, medium-term trading or long-term trading, and the greater the leverage, the greater the risks and the profits resulting from it are also large, so many investors seek to take risks to obtain the largest possible volume of leverage, as it enables them to open large volume of positions using a small part of their capital.
Some expert traders say that the minimum capital required to trade Forex is $10,000 but this does not mean that you cannot start with an amount less than that, of course the appropriate amount of capital depends on the trading style and capital management requirements and you do not risk more than 2.5-5% of your account balance per trade.