Guys please, i guess this question may sound weird but, can a 1:1 leverage work with a $10 account…i didn’t say $10k account…a $10 dollar account?..
and if someone can shed some more light to how leverage really works, i’ll greatly appreciate!
Margin x Leverage = Lot size
The minimum lot size you can buy or sell in forex trading is 1,000 unit.
Thus, with a 1:1 leverage, you margin requirement would be
Margin = Lot size / Leverage
Which in your case is
Margin = 1,000 / 1
Margin = $1,000
If your account equity balance is only $10, you do not have enough margin requirement to initiate a trade.
However, if the leverage offered by your broker is 1 : 400 .
Your margin requirement would be
Margin = Lot size / Leverage
Margin = 1,000 / 400
Margin = $2.5
If your account equity is $10, to initiate a trade size of $1,000 unit worth of currency controlled, your broker would set aside $2.5 from your equity balance. The remaining $7.5 would be available for drawdown for your trade.
For further understanding, below are 2 video
which i find very useful to understanding Margin and value of 1pip .
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wow, thanks alot bro or lady…not sure the gender…this is really helpful…i really do appreciate!