# Difference in Leverages

239
2013.11.05 02:18

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?

5394
2013.11.05 03:54
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
• www.babypips.com
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...
239
2013.11.07 07:34
Thanks alot, very useful information.