Now that my focus has shifted to MM from tech and fundamental analysis, I just want to clarify something:
Broker leverage determines the margin used, where as true leverage is based upon your stop.
Example:
Account size: $10,000
Risk: 2% = 200$
Stop = 50 pips
Contract size = micro (1,000)
Lots to use = Risk / (Stop * micro pip size) = 200 / (50 * 0.1) = 40 micro lots
40 micro lots = $4.00 / pip which is 0.4 standard or 4 mini
True leverage = Contracts bought / Account Size.... 40,000 / 10,000 = 4 thus 1:4, or 0.4 standard lots
Now.......broker leverage is decided upon when you set the credentials for your account so:
1:1: Can't do it, you need $40,000 for margin
1:10: Need $4,000 for margin
1:50: Need $800 for margin
Esentially then, you want high available leverage on your account since you've already set the risk value (thus your TRUE leverage), so the margin size is smaller therefore allowing you to set more trades (instead of settign 1:1 and then only being able to trade 10 micro lots because your entire account is being margin'd even though you will never use that ammount because of your stop...)
Broker leverage determines the margin used, where as true leverage is based upon your stop.
Example:
Account size: $10,000
Risk: 2% = 200$
Stop = 50 pips
Contract size = micro (1,000)
Lots to use = Risk / (Stop * micro pip size) = 200 / (50 * 0.1) = 40 micro lots
40 micro lots = $4.00 / pip which is 0.4 standard or 4 mini
True leverage = Contracts bought / Account Size.... 40,000 / 10,000 = 4 thus 1:4, or 0.4 standard lots
Now.......broker leverage is decided upon when you set the credentials for your account so:
1:1: Can't do it, you need $40,000 for margin
1:10: Need $4,000 for margin
1:50: Need $800 for margin
Esentially then, you want high available leverage on your account since you've already set the risk value (thus your TRUE leverage), so the margin size is smaller therefore allowing you to set more trades (instead of settign 1:1 and then only being able to trade 10 micro lots because your entire account is being margin'd even though you will never use that ammount because of your stop...)