How is leverage applied/trade size determined?

 
If you have a $10,000 balance 1:100 demo account with a risk percentage input in you EA, and if you input say 10% then is the trade size $1000 when your first trade is found or is the 1:100 leverage automatically applied so the trade size becomes 100,000 (1lot)? Any info helps thanks
 
rewtch:
If you have a $10,000 balance 1:100 demo account with a risk percentage input in you EA, and if you input say 10% then is the trade size $1000 when your first trade is found or is the 1:100 leverage automatically applied so the trade size becomes 100,000 (1lot)? Any info helps thanks

No, you will open such a lot size trade that if the SL level of your trade is hit, you will lose 10% of your account, $1000 in your case.

The leverage only affects the required margin for that trade. The larger the leverage, the smaller the required margin.

 
Eleni Anna Branou:

No, you will open such a lot size trade that if the SL level of your trade is hit, you will lose 10% of your account, $1000 in your case.

The leverage only affects the required margin for that trade. The larger the leverage, the smaller the required margin.

What if the percent risk was simply based off of your balance and not the stop loss/potential downside risk of the account? eg. 10% = $1000 from a $10K balance. A 10,500 balance = $1050 trade size...

 
49f89v:

What if the percent risk was simply based off of your balance and not the stop loss/potential downside risk of the account? eg. 10% = $1000 from a $10K balance. A 10,500 balance = $1050 trade size...

The risk percentage is always calculated on SL level, unless you have a fixed lot size.

Reason: