it's one year that I trade in forex but I still have doubts about how leverage affects pip value:
I have one alpari account with leverage 1:200 and other alpari demo account with default leverage 1:500
On both account I use an EA that have the same setting:
stoploss is set at 38 pips with fixed lot at 0.05
Well, I don't understand why I lost the same amount of money on both account with the same stoploss, the same fixed lots but DIFFERENT LEVERAGE!!!
account 1: leverage (1:200)
pair GBPUSD
fixed lot 0.05
entry price 1.5436
stoploss hit at 1.5398 (38pips)
money lost: 14.64 EUR
account 2: leverage (1:500)
pair GBPUSD
fixed lot 0.05
entry price 1.5436
stoploss hit at 1.5398 (38pips)
money lost: 14.64 EUR
I don't understand the same money lost at the same fixed lots 0.05
the lost on the 2nd account should be much more than the one on the 1st account ? is it not true ?
I use to change leverage and increase it when there is a maximum lot size that the broker has set for the total position opened.
for example total opened position lot size permitted for alpari micro account is 2.0 standard lots.
So to not go over this level of 2.0 standard lot I can double leverage from 1:100 to 1:200
so for example I want to risk 10% max of my balance
to risk 10% at 1:100 I have to open for example a position of 1.0 lotsize
at 1:200 to risk the same 10% I have to open half the position size so 0.5 instead of 1.0
so I don't understand how it could possible THE LOST IS THE SAME AT DIFFERENT LEVERAGE
WHAT'S WRONG ?
or maybe a mistake of the broker ? it seems that it's always 1:100 even if you change your leverage and increase it.
Please someone could explain this to me ?
I have one alpari account with leverage 1:200 and other alpari demo account with default leverage 1:500
On both account I use an EA that have the same setting:
stoploss is set at 38 pips with fixed lot at 0.05
Well, I don't understand why I lost the same amount of money on both account with the same stoploss, the same fixed lots but DIFFERENT LEVERAGE!!!
account 1: leverage (1:200)
pair GBPUSD
fixed lot 0.05
entry price 1.5436
stoploss hit at 1.5398 (38pips)
money lost: 14.64 EUR
account 2: leverage (1:500)
pair GBPUSD
fixed lot 0.05
entry price 1.5436
stoploss hit at 1.5398 (38pips)
money lost: 14.64 EUR
I don't understand the same money lost at the same fixed lots 0.05
the lost on the 2nd account should be much more than the one on the 1st account ? is it not true ?
I use to change leverage and increase it when there is a maximum lot size that the broker has set for the total position opened.
for example total opened position lot size permitted for alpari micro account is 2.0 standard lots.
So to not go over this level of 2.0 standard lot I can double leverage from 1:100 to 1:200
so for example I want to risk 10% max of my balance
to risk 10% at 1:100 I have to open for example a position of 1.0 lotsize
at 1:200 to risk the same 10% I have to open half the position size so 0.5 instead of 1.0
so I don't understand how it could possible THE LOST IS THE SAME AT DIFFERENT LEVERAGE
WHAT'S WRONG ?
or maybe a mistake of the broker ? it seems that it's always 1:100 even if you change your leverage and increase it.
Please someone could explain this to me ?
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