Thanks for the response! Alright, so lets say we use your example with the 20:1 leverage......ok, so you have $1500 in your account...
if you lose the 100 pips it would mean
200/1500...losing practically 13.333% ofyour account?
Thats well above the 2% recommended.
Quote:
Originally Posted by daydreamer65
The leverage that traders are talking about is for their trade size,
ie 20 000 units of EUR/JPY = Trade value of $30 000 so when this
is leveraged it will be (@50:1) approx $600, (@20:1) approx $1500.
This is the amount of deposit (or margin) required to trade @ $2/pip.
So when you lose your 100 pips, the deposit (margin) is returned to your
account less the $200.
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