So I have 1:100 leverage and I average 25% equity drawdown
does that mean with 1:200 leverage I would have 50% equity drawdown?
because I am learning.
Hi, leverage as a margin loan, this is not impact on equity draw down, its use for your trade volume margin.
Ex: you have 100$ equity / balance, your account leverage 1:100. So, you are able to trade 0.10 maximum volume in your account.
But if you have 1:500 leverage, you can trade maximum 0.50 volume. So, leverage working as a margin loan.
Remember one thing, maximum leverage means maximum risk for your account.