Can anyone tell me if there’s any difference in profit earned if I invest $250 on 400:1 leverage or $100,000 on a standard lot?
there is not difference in profit but in risk.
So the risk is lower when investing $250 because you would get margin call if things go wrong and would loose less money than if investing $100,000 without margin. Is that right?
let say standard lot is 8$ worth so of course with 250$ account you have more risk to lose the whole account if things go wrong but thats why is better to use mini or micro lots where is 1 lot wort of 0.10$ or less and so you have lower risk.with 100.000$ its lot easier to trade and if you make 10% profit a week thats lot better than with 250$ where the 10% is almost nothing and you have to risk lot more where you i believe will try to double the balance.
i know that many of us just doesnt have those 100.000$ to start with but it is better to keep testing and save at least 3000-5000$ for opening live account than lose every week or two 250$ where you have to play with higher risk.
have a good one and keep it up
I highly recommend reading our lesson on leverage.
There is “must know” information there you should understand before opening a live account.