The Leverage – The Equation

The equation is:

If we profit from a specific trade, we can see that the account balance is changing. Therefore, the leverage we’re using differs while opening trades of different exposure:

I’ve opened an account of a $1000 value, and I’m trading a $60,000 trade. Meaning that I’m using the following:

Nowadays, not every company will usually allow you to trade at least 100 times your account balance trading forex:

Let’s say that you made $1000 by closing a profitable trade. So using the same $60,000 position or positions by having a $2000 account, you’re using:

We usually use between […] of the leverage on a specific trade on every trade:

By having the same leverage value on every trade, we’re levelling any trade to the same leverage on other ongoing trades:

The idea of using leverage as an advantage doesn’t depend on the size of the position you took, your real account balance, and the available trading capital:

The need to make large profits quickly and learn how to abuse leverage will materialise the concept of easy money:

Keep your account healthy, and your trading psychology focused on applying the strategy correctly without unnecessary greed. […] trade possesses the same potential: