I hate to ask this. I thought I had more forex knowledge than this. But I'd rather ask here and look like the noob I am than lose a ton of cash. Besides, maybe some other noobs can learn along with me...
Leverage. I don't get it. 400:1, 200:1, etc, etc. Not like my stock brokerage account where everyone gets the same and its only a fraction of your account balance, not MULTIPLES of your account balance like in forex.
If I have a mini account with $1000 account balance and I open a trade for 1 lot in a USD pair with a 100 pip stop loss, the most I can lose is $100, right? 10% right? Not $40,000. Right? Assuming that's right, is that 1:1 leverage? And if my trade goes up 20 pips I'm up 20%, right?
But i don't understand 400:1 (or any other xx:1). 400:1 sounds like I could trade 400 lots on $1000. That just doesn't sound right.
Can someone give real examples of a mini account with $1000 available equity?
Thank you in advance and feel free to constructively criticize me for having a $1000 mini account instead of a $1000 micro account. THANKS!
Leverage. I don't get it. 400:1, 200:1, etc, etc. Not like my stock brokerage account where everyone gets the same and its only a fraction of your account balance, not MULTIPLES of your account balance like in forex.
If I have a mini account with $1000 account balance and I open a trade for 1 lot in a USD pair with a 100 pip stop loss, the most I can lose is $100, right? 10% right? Not $40,000. Right? Assuming that's right, is that 1:1 leverage? And if my trade goes up 20 pips I'm up 20%, right?
But i don't understand 400:1 (or any other xx:1). 400:1 sounds like I could trade 400 lots on $1000. That just doesn't sound right.
Can someone give real examples of a mini account with $1000 available equity?
Thank you in advance and feel free to constructively criticize me for having a $1000 mini account instead of a $1000 micro account. THANKS!