# Confused about calculating profit and equity

I have a [B]Micro [/B]account
[B]Leverage[/B]- 1:100
[B]Equity[/B]: £1000

Formula for calculating profit is –
(Closing price – opening price) X contract size X number of lots

The only way to increase profit is if

1. The gap between closing price and opening price is large
2. If the contract size is large (10000 or 100,000)
3. If the number of lots are greater

Formula for calculating margin –
Lots X (contract size / leverage)

[B]My questions:
[/B]1. Where is the role of equity here to increase profit? None of the formula mentions ‘equity’.
2. In my case, where the contract size is fixed at 1000 (micro account), is increasing the number of lots the only way to increase chances of profit? Since Profits = (Closing price – opening price) X contract size X number of lots
3. I thought since my leverage is 1:100, I can control an account worth £100,000, but where in the above two formulas it is evident?
4. If I always trade 1 lot, will my margin be always same which is £10? For example, margin = 1 X (1000/100)? Then what is the point of increasing equity if trading 1 lot always requires margin of £10? So my margin will be £10 even if my trading capital is £100, or £1000 or £10000? Confused.

1. equity is account balance+profit or loss
2. “chances of profit” is not directly related to volume traded.
3. Margin formula. Lots X contract size is how much you can control without leverage, so dividing by 100 you get number that is 100 times greater.
4. The point of increasing equity is that if you do that means you have earned some sweet money you can withdraw, or increase volume traded and earn even more money (bigger equity).