From what I understand, Leverage does not affect your pip value. What affects your pip value is the volume of trade in lots. The higher the lot size the higher the pip value. High leverage gives your room to buy more, hence increase lot to increase pip value, which is more profit when you gain and more loss when you loose. If you have 500USD, you could buy more with a leverage of 1:500 and buy less with a leverage of 1:100. That is it. Where the actual risk lies if the volume of trade in one transaction.
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- | Joined Feb 2011 | Status: Member | 88 Posts
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