XAUUSD Account Meaning - 2 Types of XAUUSD Accounts

In recent years retail xauusd has grown hugely in popularity & the demand for different types of trading accounts has also grown. There are many different account types available to any trader who wants to trade and participate in the online market.

The market is a highly leveraged market for speculating on gold instrument valuations. Traders can purchase large amounts of xauusd units using leverage - XAUUSD Leverage is what makes xauusd trading attractive to many online traders - with leverage a trader can make more profits or losses because they use less of their capital & borrow the rest.

There are different types of xauusd accounts available to help investors better manage their account capital as well as their xauusd trade transactions.

How a Real XAUUSD Account Looks Like

It is therefore important that the traders consider what they want to get out of their xauusd trading, before deciding on the account type to open.

Below is a comparison of the two types of xauusd accounts commonly used to trade xauusd. The account types review below explains the different features of each of the two types of xauusd accounts.

Standard Accounts Types Explained

XAUUSD Account Meaning - Standard Trading Account. A Standard Trading Account is denominated in US Dollars and xauusd trade transactions are placed using standard lots. One lot is also referred to as a one contract. Minimum opening capital - at-least $10,000 USD.

1 contract refers to the minimum size of a single trade transaction. This account option is the most suitable for traders with enough capital to invest in xauusd - this account option requires $10,000 to $50,000 dollars in starting capital, for this standard account the trader will not be undercapitalized and with good gold money management trading rules and gold money management trading strategies, this standard account option has the best chance for profitability because it is not undercapitalized. Under capitalization is what makes most traders in xauusd not profitable.

It isn't recommended to open a standard account unless you have an account balance of at between $10,000 minimum and $50,000.

Professional Money Managers advice $50,000 minimum to open this standard account and only opening trades with only 2% of the trading capital you have in your account. However, most online brokers will still open this standard account for you if you have more than $10,000.

With xauusd leverage of 100:1, you will borrow from your broker (with leverage of 100:1, your broker gives you $100 dollars for every $1 dollar that you have in your account, therefore if you have $1,000, the broker will give you $100 dollars of xauusd leverage for every $1 dollar you have, meaning after leverage you will have $1,000*100=$100,000 which you can then use to trade xauusd).

Micro XAUUSD Accounts Types Explained

XAUUSD Account Meaning - Micro Account. Micro XAUUSD Accounts use lot sizes of only equivalent one-hundredth that of a xauusd standard lot. These Micro xauusd accounts are often appropriate for traders without a lot of xauusd capital and can sometimes be opened with only a $5 minimum balance.

This Micro xauusd account option allows the trader to open trades in micro lots. 1 xauusd micro lot is one-tenth of a xauusd mini lot and one-hundredth of a xauusd standard lot.

This Micro xauusd account option is generally best suited for account equity balances that are between $1,000 and $5,000

In xauusd trading, one xauusd standard lot is the standard transaction minimum of a given xauusd instrument traded in the market. But many brokers offer fractions of this xauusd standard lot to enable more retail traders to access the market. Being able to offer xauusd micro lots reduces the minimum trade transaction size thus giving the beginners and also those xauusd retail traders without a lot of xauusd capital to start trading and get a feel of the market without investing a lot of gold capital.

There are learn xauusd online tutorials that a trader can read even before opening a real xauusd account, and to get extra practice in xauusd trading before opening a real xauusd account a beginner trader should open a practice XAUUSD demo account with a broker - so as to practice placing xauusd trade transactions & also learn about the trading platform software before opening a real xauusd account and investing with real money.

During the xauusd training period a beginner trader will be using the practice trading account, the beginner trader will learn the key factors needed to succeed in xauusd such as: xauusd trading bascis education, xauusd money management rule, xauusd plan and xauusd systems.

The types of xauusd strategies used and the skills required for any of these 2 xauusd accounts are essentially the same - those xauusd skills and xauusd strategies required for the Standard account or Micro xauusd account are the same the only difference to be adjusted are the gold money management trading rules for each account type.