Help with leverage

Beginner Questions
1

Hi people,

I opened a trading account, want to practice on it. I can afford to lose $25…lol

I need help with leverage. My leverage set up to 500:1

I did not really get it how I can profit from this.

I use 0.01 minilot and my pip value is $0.10.

My margin is 2 USD, equity 48.74 …

How can I use the leverage, and how my margin and equity would be influenced?

Thanks for the help,

Bambura

2

I don’t understand how you can use leverage any differently that your account is set up for.

You can’t change leverage in the middle of a trade to lessen losses, nor can you increase it to make bigger gains.

You’re using leverage based on the fact you can trade using a 25 dollar start up account.

If it is possible, you should change your lot sizes to accommodate a $0.01 pip value instead of $0.10.

That will give you much more free margin to play with.

I know the gains will be small, but your losses will be small as well, and at first on a live account, the losses come faster than the profits.

3

Your account is already using leverage at 500:1 that is why you can make $0.01 per pip while trading only 0.01 lots at a time.
Don’t expect to make big profits while trading an account of only $25
If you want to make bigger profits you should deposit more money in the account to increase your margin so you can keep your risk the same while trading bigger lot sizes

4

Hi SDC,

could you further enlighten me pls?

i have set up a account in hymarket wif a only 50USD.

everytime i trade, its a risk of 10 20 30 40 50 USD.

wat kind of leverage is this? i heard from some that its 1:100?