Quote:
Originally Posted by Steven IS
Leverage, the classic question...
Lets try to explain it as simple as possible with an example:
A leverage of 200:1 means:
Your $1 in your account balance becomes $200 when you open a position. This means that a move on the market has a greater influence on your account, 200 times bigger than actually, this of course works in both ways, negative and positive.
So lets say you open a 1 lot with 200:1 leverage. 1 lot stands for 100,000. So with a leverage of 200 that would mean you use $500. (500*200)
So if your open position then gains 10 pips, you gain $10 with that $500. because it is 1 lot, you gain $1 for every pip. Same goes for losing pips.
I'll leave the rest to Christian  |
Steven, you got me confused.....
For 100,000 lot every pip worth $10, so if you trade gain 10 pips you get $100 out of initial invt $500
I've read from babypips (
Know Your PS and LS - babypips) and you can correct me if I'm wrong
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Re: Good Resources for Beginners to Start With
Linear Mode
