Home Forums General Discussion EA Studio doesn't seem to take leverage into consideration Reply To: EA Studio doesn't seem to take leverage into consideration


Hey Jacpin,

Glad to see you opened another interesting topic.

Now, the leverage has nothing to do with the results in pips. That is why EA Studio does not have any interfere with it, ot any settings about it.

Leverage with simple words is borrowed money from the broker to open higher positions. Of course we do not pay any interest on it.

For example, if you have 10 000 account with 1:100 leverage, you will be able to opene maximum 100 times bigger positions, which is 1 000 000 position. BUT the maximum you can lose will be your 10 000 that you have. And this could happen with small move of the price.

That is why we never open the maximum we can.

Now, if you have 1:500 you will be able to open 500 times bigger position from what you have in the account.

Another thing, 1:1 is if you go on the exchange bureau and buy any currency.

The move of the market is one and the same…nothing to do with the leverage. This is between you and the broker, not the market.

I hope I explained it in more practical way.


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