thanks. i just finish reading the defination and i realized the problem is that i am mixing up leverage ratios with margins. higher leverage means the cost of each pip goes up so i make more money but i have a higher risk. Am i getting this correct?
100:1 leverage is the same as 1% margin.
in a mini account lot size is $10 000. so for every $100 i have trade $10 000. right?
now whats the lot size for the micro account? wild guess... is it $1000? so that would be for every $10 i have i get to trade $1000 of my broker's money?
im not new to trading,shamefully. i just never took the time to understand how i was making money and lossing money. i hope im finally understanding this thing. lol
Last edited by honeb; 12-06-2006 at 02:29 PM.
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