Account with 50:1 leverage:
What is the relation of dollars lost to pips?
If I had a 500$ account how many pips could I lose before the account was completely lost?
Sorry, but I am having difficulty understanding leverage.
You don’t really need to understand leverage as such, what you win or lose, is the amount you put on per PIP, leverage only serves as a maximum to this, and with any sensible system you won’t get near this maximum.
That’s a very good point. It’s good to understand things like how leverage comes into play, but it can be really confusing. I know I personally still struggle with this and spent a LOT of time calculating lots when I was swing trading with a lots broker (now I use Oanda which goes by units and seems more intuitive).
Anyway, a better focus might be on gearing each trade, based on the stop level, to a maximum equity loss percent. For example, if you know your trade setup has a 30 pip stop loss, then figure out how many lots = 2% of your account equity. That way you know that if your stop is hit, the max loss is 2%.