Okay, I believe this belongs somewhere in the beginners section... I searched and found nothing... if it is already in discussion, please move this their (mods) and direct me to the answer.
I've been trading for a while now, but never bothered with leverage. My trading account have been set up to trade at 100:1>>> for every $100 that I trade, my pip value is $1.
I'm now opening a new account at another broker with a leverage of 200:1, now for every $50 I trade, 1 pip = $1
My Q is:
My risk is 1/2 of the usual....?
I deposit $300 in this account
My Margin is 1/3 of the account = $100
Meaning I have $200 or 200 pips margin @ 100:1,
BUT at 200:1
I deposit $300 in this account
My Margin is 1/3 of the account = $100
Meaning I have $200 or 400 pips margin @ 200:1,
is this correct... so if I keep trading with the same lot size, not increasing my lots because my leverage increased, then it works out better?
I've been trading for a while now, but never bothered with leverage. My trading account have been set up to trade at 100:1>>> for every $100 that I trade, my pip value is $1.
I'm now opening a new account at another broker with a leverage of 200:1, now for every $50 I trade, 1 pip = $1
My Q is:
My risk is 1/2 of the usual....?
I deposit $300 in this account
My Margin is 1/3 of the account = $100
Meaning I have $200 or 200 pips margin @ 100:1,
BUT at 200:1
I deposit $300 in this account
My Margin is 1/3 of the account = $100
Meaning I have $200 or 400 pips margin @ 200:1,
is this correct... so if I keep trading with the same lot size, not increasing my lots because my leverage increased, then it works out better?