Leverage

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I do not know anything about 'Leverage'. I am new in trading, my leverage is now 1:1000, but I can not know what is 1 or 1000 stands for. How does leverage will effect my account. Please any body tell me about leverage.

[phi nuts]

babon86:
I do not know anything about 'Leverage'. I am new in trading, my leverage is now 1:1000, but I can not know what is 1 or 1000 stands for. How does leverage will effect my account. Please any body tell me about leverage.

Every where 1 standard lot is equal with 100.000 units, though some broker mat offer different standard lot, like for example 1 lot is equal with 10.000 units.

If we buy EURUSD for 1 lot at price 1.23456, then we must pay for it at US$ 123.456 (= 1.23456 * 100.000). 

With leverage  1:100, you only pay that for US$ 1234.56 (= US$ 123.456 / 100).

With leverage  1:300, you only pay that for US$ 411.52 (= US$ 123.456 / 300).

And so on.