In case you're still not sure, you can use margin calculator, pip worth calculator to work out the P/L . .
In case you're still not sure, you can use margin calculator, pip worth calculator to work out the P/L . .
Hello !
I'm new at Forex, '' I do not know something. Can you describe me, please? I use a demo account and I have this scenario:
I used a leverage by 1:1000, size 0.01 and a T/P at 100 pips. Profit was around 0.94$. Following that, I changed the leverage to 1:500, same size by 0.01, same T/P by 100 pips and the profit was the same (0.94$). It should not be double as today leverage is double less, from 1000 to 500?
So, doesn't matter whether account is 1000$ or 10 000$ or if the leverage is different, if you have the identical size, you make the identical profit?
I know it is a stupid question, but I'm a newbie and I'm somewhat confused about this situation. What I understood from studying I wrote previously, but looks like that I don't understood it right.
SimaA , its confusing for all at the beginning. The winning or losing of pips doesn't rely on the leverage. It is the Volume Size , so with the 0.01 Lots you'll always get the same effect for 100 pips profit. Leverage comes in play while you open the trade. Using 1:1000 leverage you may need twice less margin to open this trade as with 1:500. For example to open 0.01 lots with 1:1000 leverage the essential margin is going to probably be USD , whereas with 1:500 it will be two USD. I presume your account is in USD
Just like Dwain said leverage doesn't alter the value of a Pip it's merely the position dimensions. In fact what you are referring to with the 1;1000 and 1:500 is the maximum leverage you have put at your brokers for your account. Therefore by lowering your leverage that you do not change your position dimensions you just increase your funds needed to open that postion.
Basically higher leverage only lets you open larger lot sizes with the same quantity of capital. So if you did desired to double the dimensions do not cut your maximum enabled leverage but double your lot dimensions.
The higher leverage always brings profit very quickly if there's sufficient trading balance as well proper trading program . But traders consistently use higher leverage devoid of exact money managing pan , consequently they become failure when trading practically.
When I was a newbie in Fx I utilized 1:1000 leverage due to feelings , I presumed it can bring profit very quickly , now I am using just 1:200 for avoiding risk , because I know just how much risk carry about the leverage.
Is it possible your demo account is financed in USD? That would make each normal lot = $1.00 USD each pip, maybe not 1.00Euro -- so your 12 pips = 1.20USD.
Current exchange rate is /- EUR/USD 1.356 Earning your 12 pips worth 0.88euro following the theoretical exchange from your FX account to your Euro account.