leverage question ???

hi all

might be a stupid question, but i wouldn't know until it is answered

is opening one lot with 1:400 leverage same as opening 4 lots with 1:100 ... in terms of profit making

As far as profit making goes, no its not the same. 1 lot is 1 lot, roughly $1 on a mini account (assuming you are only dealing in USD) and $10 on a standard. So if you placed an order for 1 standard lot and it went 10 pips in your favour you would earn $100 roughly. If you put on 4 lots you would earn roughly $400.

The difference with the leverage comes when you are working out how much margin that will take to place the order. If you use 1:400 leverage 1 standard lot is roughly $250 of margin used. 1:100 it would use $1000 of margin.

Here is a link to an excellent post on margin, leverage etc.

http://www.forexfactory.com/showpost...85&postcount=8