[quote=“monirainvestment, post:1, topic:106521, full:true”]
Dear expert traders,
Please give me a clear explanation what leverage is actually being used for the following scenarios.
… I am expecting a good explanation from you. [/quote]
If you are trading a single position, actual leverage used depends on:
• your account balance, and
• the notional value of your (single) position, which depends on the pair you are trading
If you are trading multiple positions, each single position can be figured as described above. The total leverage used in this scenario is simply the sum of the single-position leverages.
Your question implies that all of the positions in your 5 examples are EUR/USD positions, and that you are simultaneously long and short the same pair. In other words, this is an attempt at some sort of partial hedge. Given all that, here are the answers to your 5 examples:
(1) At the current price (EUR/USD = 1.1337), your 0.01 lot (1,000 units) has a notional value of 1,000 x $1.1337 = $1,133.70. The actual leverage used in this trade is notional value ÷ account balance = $1,133.70 ÷ $1,000 = 1.13:1 actual leverage (rounded off).
(2) Using the same current price for EUR/USD, your 0.01 lot (long) and 0.02 lot (short) add up to 0.03 lot of EUR/USD (whether long and short does not matter). This combined position size is 3 times as large as the single position in example #1, so the actual leverage used is three times as much: 3 x 1.1337 = 3.4:1 actual leverage (rounded off).
(3) In this example, you have a total of 6 micro-lots (6 positions of 0.01 lot each), so the actual leverage in this case is 6 x 1.1337 = 6.8:1 actual leverage (rounded off).
(4) In this example, 10 micro-lots results in actual leverage of 10 x 1.1337 = 11.3:1 actual leverage (rounded off).
(5) In this example, 15 x 1.1337 = 17:1 actual leverage.
I’m expecting you to carefully study these examples, and understand them completely, before asking any more questions.