How to use leverage example

Beginner Questions
1

Hello,

Let us say I have €90 which I will invest in EUR/USD and I want the position to be worth 18 microlots (18000 Units)

Question:
Does that mean that I have to use leverage 1:200 where the calculation will be:
€90 * 200 = 18000 Units

Let us say that I have €20 which I will invest in EUR/USD and I want the position to be worth 4 microlots (4000 Units)

Question:
If I have put an initial stop for 14 pips, will my loss be according to below:
1 Pip change for 4 microlots = €0,4

14 pips * €0.4 = €5.6

This means that my loss would be €5.6 on this stoploss?

2

[I]Actually using 200:1 leverage[/I] is a reckless way to trade. (And it’s not even possible unless your broker offers you [I]maximum allowable leverage[/I] higher than 200:1.)

Those considerations aside, your arithmetic is correct — with one exception:

In a EUR-denominated account (which your examples imply), the value of one pip will almost never be €0.10 per pip per micro-lot, because the EUR is never the cross-currency in any currency pair. (The only exception to this statement would be the rare situation in which a currency was at exact parity with the EUR — for example, if EUR/USD = 1.0000, then one pip would be worth €0.10 per pip per micro-lot.)

You can confirm all this for yourself, by playing around with Pip-Value Calculator.