What’s the Minimum Amount Required to Trade Boom 500 Index?

Boom 500 is a humble synthetic index. Unlike it’s aggressive colleagues like Boom 1000 or Crash 500, it floats quiet smoothly and the spike generated is not huge.

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If you’re wondering how much equity or amount you need to start trading the Boom 500 Index, I’ve included everything on this page that you need to know about the equity requirement for Boom 500 Index.

When I first started trading the Boom 500 index, I was surprised to see how perfectly it follows technical analysis.

While the Boom 1000 index only generate spike from the zone when it’s in a good mood (ie, when there is a clear uptrend), the Boom 500 index is different…

Related: Top 4 Boom & Crash Spike Catching Strategies

You can still catch spikes in the Boom 500 index even when there is no uptrend. Though minor spikes, you’d still catch a couple good ones.

So, how much equity do you need to trade the Boom 500?

Firstly, there are no hard and soft rules for equity requirements for Boom 500 Index.

You can start trading the Boom 500 Index with as low as 2 or 3 dollars. But that would take you months and months to grow your trading account. So when we talk about the minimum amount, the amount should also be sufficient enough to let you play around and grow your account by trading the Boom 500 Index.

Here are some scenarios that’ll help you understand the equity requirement for Boom 500 Index. Once you understand how things work, you’d be able to decide how much you should put in.

Scenario#1 You’re just starting out with Boom 500

You’ve heard about the Boom 500 Index from someone you know and you want to try your luck here.

Since your motive here is to check the legitimacy of the Boom & Crash Indices, it’s advisable to go with an amount that can let you have a fair experiment.

For the Boom 500 Index, $10-$20 is enough. This much equity can let you play around for a couple of days with 0.2 lot size even if you consistently fall into the den of stop-loss hunting!

You can either grow your current equity gradually or deposit some more balance if you want to accelerate the growth.

Scenario#2 You want to create a reliable income stream

If you’ve strong command over technical analysis, the Boom 500 could become your all-time favorite pair.

You must’ve at least $500 equity if you’re looking to get something out of the Boom 500 Index.

Suppose that you trade the Boom 500 with 1 lot size and you attempt on catching 15 spikes but manage to catch only 10 with a risk to reward ratio of 1:3. Here’s how your stats are gonna look like:

*considering the average spike is 9 pips and you’re stopped at 3 pips

Loss= $15 (3*5)
Profit= $ 90 (10*9)
Net Profit/day= $75 (90-15)

Repeat this process 20 days a month and you will secure $1500 monthly.

I recommend you read this article on how to grow a $50 Forex Account.

Scenario#3 You want to make a fortune

If you’ve been following the forex industry for quite a time now, you know what I’m talking about!

If you want to reach that level, your equity should be enough to give you edge over other retail traders.

Most retail Boom & crash traders trade with $100-$1000 equity and it’s normal for them to blow up their accounts in tight market conditions. According to MoneyShow, 90% of retail forex traders lose money!

In order to gain a competitive edge and better cope with the market conditions (specifically the stop hunting) , you need to have more equity. For Boom 500 index, your equity should at least be $5000 if you plan to occasionally hit the max lot size which is 50.

Catching a spike with 50 lot size on Boom 500 index means $500 profit on an average spike of only 10 pips!

This can significantly grow your account in a short period of time.

Alright now that we are on the same page, here’s how you should decide your initial deposit for Boom 500 Index:

• Identify your motive for trading the Boom 500 Index
• Assess your financial position carefully
• Understand that you can lose the capital since trading is inherently a risky business
• Come up with a realistic and sensible amount and deposit it into your Broker’s account

A conclusive answer to the question would be:

There is no minimum equity requirement for trading Boom 500 Index. You can start with as low as $2. However, It’s advisable to start with at least 10-20 dollars. Additionally, if you want to create an income stream out of Boom 500, then you should have at least $500 equity and if you want to hit the max lot size of 50, then your equity should at least be $5000.

Remember that you should always place your stop-loss close when applying the 50 lot size because it will cost you $50 for every one pip movement against your direction.