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[ask] leverage


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  • 3 months later...

Re: [ask] leverage

 

Craver is right.

 

What this means is that if you have $1,000 on deposit, you can open positions worth up to $100k at 100:1, or $200k at 200:1.

 

So, on my 100:1 account, I can open 1 full lot of EUR/USD. The 1% margin requirement would use up all of my deposit, so as soon as the market moves just 1 pip against me I would be in margin call (in reality of course, you also need to account for the spread, so would be in margin call immediately).

 

Hope this explains it.

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Re: [ask] leverage

 

1:10 is for traders who experience difficulties choosing right lot size so the risks are decreased

- 1:100 is a standard leverage for traders who are able to choose appropriate lot size for a desired risk/profitability level

- 1:200 is a leverage for agressive trading - high risk and high profitability

- 1:500 is a leverage for extreme trading - the whole capital is under risk but enormous profits are possible

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