Difference in Leverages

 

Hello traders.

  

I have a question. If a person has $100 with a 1:500 leverage. How many lots can he trade? And if a trader has 1:50 leverage how much does he need to have to trade the same amount? What I am trying to say is I have an account with a maximum leverage of 1:50 and the signal I am trying to follow has a leverage of 1:500, how much money do I need to match his lots. Say if he trades 0.01 lots, how many times do I need to multiply that to get the same return, is it 10 times?

 
NoCool14: I have a question. If a person has $100 with a 1:500 leverage. How many lots can he trade? And if a trader has 1:50 leverage how much does he need to have to trade the same amount? What I am trying to say is I have an account with a maximum leverage of 1:50 and the signal I am trying to follow has a leverage of 1:500, how much money do I need to match his lots. Say if he trades 0.01 lots, how many times do I need to multiply that to get the same return, is it 10 times?
Here & Here.
Leverage and Margin Defined
Leverage and Margin Defined
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We know we’ve tackled this before, but this topic is so important, we felt the need to discuss it again. The textbook definition of “leverage” is having the ability to control a large amount of money using none or very little of your own money and borrowing the rest. For example, to control a $100,000 position, your broker will set aside...
 
Thanks alot, very useful information.