ForEx leverage losses on a mini account? -

How do I calculate it? My broker says $1 per pip. I use 100:1 leverage. The currency moves up 5 pips. I gain $5? The currency loses 5 pips. I lose $5? Please explain. The Price per pip depends on the currency you are trading and the position size you enter the market with. Here are a few examples that could be helpful: Trading the GBP/USD with a position size of 0.1 lots(1 mini-lot) you will be trading at $1 per pip. If you take a position size of 0.01 (1 micro lot) you will be trading at 10 cents a pip. And of course if you trade a position size of 1.0 (1 standard lot) you will be trading at $10 per pip. In contrast if you trade the USDJPY you will be trading 95 cents per pip using 1 mini lot. There is a formula to determine the price per pip for each currency but the easiest way is to google quot;pip calculatorquot;. As for leverage, the leverage on your account does NOT change the price per pip. The leverage determines the maximum exposure you can have. Meaning, at 100:1 the sum of all your positions currently open would be 10 times the allowable sum of all your positions at 10:1. It also means that at 100:1 you can hold positions in the market at about $100 for every $1 you have in your account (I say about $100 for every $1 because the every currency is different). From what you have written, you are using mini account, that is 1pip=$1dollar. If you were using a full account it would have been 1 pip = $10. Of course please note that it depends on the currency that you are trading as well. To receive %100 accurate and free FOREX buy/sell signals join our group: http://finance.groups.yahoo.com/group/fr... See our statement as proof. It depends all on the size of the account and which currency you are buying.