Hi, Could someone explain give me some simple examples on real leaverage and how it can affect the trade?
Thank you.
Hi, Could someone explain give me some simple examples on real leaverage and how it can affect the trade?
Thank you.
Real leverage, or gearing, or whatever term used is simply the actual amount of leverage you’re using at a given point in time. For example, if you’ve got a $10,000 account and your trading a standard lot of USD/JPY ($100,000 valuation) then you are trading at 10:1 real leverage ($100,000/$10,000). Real leverage (or whatever) has basically zero impact on a trade. Actual trading size is the only thing that matters, as that (not leverage) defines risk and P&L.