Investment loss in Forex Leverage?
If i have a 00 mini account for forex trading (Leverage of 4:1). After buying 1 minilot (0) EURUSD, what % loss of the EURUSD needs to be before i loss my 0 investment? How many pips before i lose that 0?
Assume EURUSD is 1.400 when i buy the minilot.
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Tagged with: account • eurusd • Forex Questions • investment • investment loss • leverage • loss • mini account • pips
Filed under: Trading Forex
You’re making me think here. Is this an exam?
The important data is that you’ve got 4:1 leverage and that you’re trading $100.
What I misunderstand is why you’ve got 4:1 leverage? It is more common to offer leverages of 100:1 or 400:1.
So if you had 100:1 leverage, you would lose $100 when the currency moves 100 pips against you. And proportionally, you would lose $100 with 400:1 leverage when the currency moves 25 pips against you.