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How to calculate leverages relating to open positions?

  • Post #1
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  • First Post: Nov 9, 2010 8:52pm Nov 9, 2010 8:52pm
  •  funnyboy
  • | Joined Jan 2007 | Status: Member | 132 Posts
Hi.
I want a simple way to calculate open positions relating to leverage.

For example,

I use 1:50 leverage.

If I use all money = I use 1:50 leverage.
If I use part of my money = part of 50 = Ex. 1:30 = less leverage.

I want a formular to calculate this. Anyone can tell me?

Thanks.
  • Post #2
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  • Nov 10, 2010 12:13am Nov 10, 2010 12:13am
  •  billflet
  • Joined Mar 2007 | Status: It's all just noise. | 1,681 Posts
Position size divided by account balance.

Open 1 standard lot (100k) with a 10K account balance and you are leveraged 10:1. 100k divided by 10k = 10

Open 5 minilots (50k) with a 10k account and you are leveraged 5:1.
50k divided by 10k = 5.
 
 
  • Post #3
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  • Last Post: Nov 10, 2010 12:53am Nov 10, 2010 12:53am
  •  thelws
  • Joined Nov 2008 | Status: Member | 2,055 Posts
what bill said
 
 
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