Hello, good day all.
Please, I have this question about leverage as to what effect it has on profit/loss per pip.
Assuming, both Mr A and Mr B have same capital that is $10k
If Mr A use a leverage of 1:100 and Mr B use 1:200 and both open a position with 1 lot,
Will there be a difference in gain per pip movement ?
And if results are the same is it preferable to use 1:200 as this gives room for more “free margin”?
Looking into how margin and leverage works (basics level), using a 1:1 leverage is impossible unless you have more than $100k to open a position of 1 lot.
Am trying to understand in depth about this leverage so any article recommendations will be appreciated as Am not completely satisfied from what I read in the leverage section in babypips study