High risk critical leverage

Higher leverage, the smaller the margin percentage you get. Margin percentage determines the amount that the trader will need to open and then win the position. Margin should not fall below the balance-line account, otherwise you will get feedback - the current position is automatically closed.

The high leverage could benefit, if the trader does not try to trade big positions or open too many positions at once.

To determine the size of the leverage you need, you need to know how much you have invested, and then simply calculate the pip value for position (lot size) that you want to open.

Deposit, investment = $ 2000.

Leverage = 20:1

Size of 1 lot = 100 000 units.

Pip value for a given lot size is $ 10.

So, will have serious consequences if you lose a 100 pip?

-100 * $ 10 = - $ 1000. Yes, it will have serious consequences.

Conclusion, lot size of $ 100 000 is too large for an investment of $ 2000.

You can try to reduce the size of the position at 10 000 units.

Pip Value then be $ 1.

So, will have serious consequences if you lose a 100 pip?

-100 * $ 1 = - $ 100. Yes, it will have serious consequences, but such a loss will allow you to stay on the market and you must be very careful in the online forex trading currency.