Trading Forex on MT4 - A Simple Question

Trading Tech and Tools
1

Hi there,

I am currently paper trading on my demo account using the MT4 platform. I have also been doing a lot of research on the platform and its functionality over the last few months. I have a good understanding of forex trading now and have been trading successfully on my demo account to date, however have a few (possibly obvious) questions that I want confirmation on.

I want someone to summarise a few things for me please:

Explain leverage in MT4 platform - when I set up my demo account it asked for this in advance, I set it to 100:1 but where do I select this option within the platform? or is this automatic and only allows you to trade with a certain lot size based upon your balance? When I look at the “Exposure” tab you can see the balance value is exactly 1 100th of the volume, hence 100:1 leverage - so I guess that means I can trade with a volume 100 times bigger than the balance, is that correct?

Explain lot size losses in MT4. I understand how you calculate 1 pip values for a trade and they obviously vary based on lot size and exchange rate and rate decimal place, however I would like to hear someone else’s explanation on how loses work in MT4 as I need extra confidence that I’m not going to suddenly owe 100,000 to my broker for using a lot size of 1! This is obvious but would be good to get someone to reassure me - just want to confirm what I think I know - that loses only relate to the pip value and its movement in a trade rather than the volume of currency being traded.

Explain - Can you end up owing money to your account balance i.e. you are in debt to your broker (in real account) or does it automatically stop when your account hits zero.

2

My first set of questions didn’t really make much sense to anyone other than myself, so I have reworded and simplified. Thanks in advance.

3

you can found all these information at babypips school, cover all your question.
leverage simply act as loan, means our current account match those leverage size.
and it’s related to margin requirement for each trade been made. in real life our leverage used are 1:1, means when we need to order something we had to paid in full amount, at derivative markets paid are in “down payment” borrowed from our current brokers. short video how the lverage works

pip value also depend on which currencies you trade, 100k notification are used for most currencies. and it’s different both for direct and indirect pair.
last question, not a chance, our account will stop at zero sum.

4

For pip values you can always use a pip calculator. Many brokers (non MT4 offer this in the order window), but you can find plenty of calculators online as well.

5

Thank you for the help, I ask the questions because I want to be reassured before opening live account.