How much did I risk?

[VanessaC]

I entered a trade to buy 8 standard lots of EUR/USD @ $1.30855 in my demo account. Does this mean I risked $1,046,840 with only 50:1 margin The demo account has only $10,000 working pretend capital.

Thanks!

[NewbTrader]

I entered a trade to buy 8 standard lots of EUR/USD @ $1.30855 in my demo account. Does this mean I risked $1,046,840 with only 50:1 margin The demo account has only $10,000 working pretend capital.

Thanks!

it means you bought 800,000(each lot = 100k) of eur/usd
meaning for every pip it costs you 80$
since your account have 10,000, at most you can lose is 10,000
but before you lose all of that, you most likely going to get margin called

with 50:1 margin, not sure if it’s even possible to buy that much lot, perhaps it was a micro(1k) or mini(10K) lot

[VanessaC]

it means you bought 800,000(each lot = 100k) of eur/usd
meaning for every pip it costs you 80$
since your account have 10,000, at most you can lose is 10,000
but before you lose all of that, you most likely going to get margin called

with 50:1 margin, not sure if it’s even possible to buy that much lot, perhaps it was a micro(1k) or mini(10K) lot

Reading other threads, it’s obvious that with my $2,000, I should be concerned with opening a “micro-lot” account, with perhaps 2:1 margin?

I’m looking into how my demo account is able to allow lot sized trades at 50:1, having only $10,000

[Master_Tang]

Reading other threads, it’s obvious that with my $2,000, I should be concerned with opening a “micro-lot” account, with perhaps 2:1 margin?

I’m looking into how my demo account is able to allow lot sized trades at 50:1, having only $10,000

Margin is based off of lot size.

And yes, with 2k, you should be looking at a micro account.

Are you sure you’re not using “mini” lots, and inadvertently calling them “standard” lots?

a 1.0 lot size on a mini account is +/- $10,000, and on 50:1 would use +/- $200 in margin per trade to open. Those are easily attainable on a 10k demo.