Example:
I buy $2000 worth of eurusd at 1.0000 with 2:1 leverage(I have 1000 in my account). If the eur loses half its value against the dollar I would be wiped out. It would take 5000 pips for the eur to lose half its value and for me to lose $1000.
next scenario, I buy $2000 worth of eurusd at .5000 with 2:1 leverage(I have $1000 in my account). If the eur loses half its value against the dollar I would be wiped out. It would take 2500 pips for the eur to lose half its value and for me to lose $1000.
In this scenario a pip can not equal a pip at different prices. Am I right, or what am I missing?
I buy $2000 worth of eurusd at 1.0000 with 2:1 leverage(I have 1000 in my account). If the eur loses half its value against the dollar I would be wiped out. It would take 5000 pips for the eur to lose half its value and for me to lose $1000.
next scenario, I buy $2000 worth of eurusd at .5000 with 2:1 leverage(I have $1000 in my account). If the eur loses half its value against the dollar I would be wiped out. It would take 2500 pips for the eur to lose half its value and for me to lose $1000.
In this scenario a pip can not equal a pip at different prices. Am I right, or what am I missing?