True Leverage in MT4

You can easily calculate your real leverage from your Margin Level %
Real Leverage = Account Leverage / Margin Level

Here is how you can derive that:

Margin Level = (Equity / Margin) x 100
Margin Level (as a decimal) = Equity / Margin

Margin = Position Size / Account Leverage
(Note: Position Size is the number of lots traded.)

Replacing Margin in the equation, we get:
Margin Level = Equity / (Position Size / Account Leverage)

Real Leverage= PositionSize / Equity
Position Size = Equity x RealLeverage

Replacing Position Size in the equation, we get:
Margin Level = Equity / ((Equity x Real Leverage) / Account Leverage)
Margin Level = Equity x (Account Leverage / (Equity x Real Leverage))
Margin Level = (Equity x Account Leverage) / (Equity x Real Leverage)

Equity cancels out of the equation, so we get:
Margin Level = Account Leverage / Real Leverage
Real Leverage = Account Leverage / Margin Level

So if your account leverage is 200:1 and your margin level is 1000%
Then your Real Leverage = 200 / (1000 /100) = 200/10 = 20

And if your account leverage is 100:1 and your margin level is 1000%
Then your Real Leverage = 100 / (1000 /100) = 100/10 = 10

In MQL4 code:

While great overall, Hanover's explanation is wrong on the contract denomination. It's actually the other way around:

xxxUSD pairs e.g. 1 lot EURUSD= EUR 100,000 contract

For a USDxxx pair, e.g. USDCHF. 1 lot = USD 100,000 contract size

Well spotted.

The errors in that post were pointed out in another thread several years ago. I reposted it in full there, including the corrections. But I wasn't able to change the above post, as the 24 hours allowed for editing had already elapsed.

Guys,

There is a very nice indicator, it is leverage meter, I'd like to share it:

by: http://www.forexfactory.com/showthread.php?t=491752

Hanover:

You may be interested, if not pleased, to know that your post is still helping forex noobs all these years later. You are a gem, and one of the reasons why I like forexfactory so much.

Thank you for your efforts and willingness to share your wisdom.

BK