/biz/ - Business & Finance

Aw lawd he comin

Lets say I have $1000 and there is 50x leverage, trading EUR-USD . So I control $50K. I understand that after I buy in, if the price moves so that $50K worth of EUR now becomes $50,500 worth Euro, I sell at that point and get $500 profit.

I want to know what happens when price moves down instead of up initially but after a week or so, price moves back up.

So $50K worth of EUR becomes $49500 worth on day2. But on day 7, it becomes $51000. So will I get $1000 in profit on day7 if I sell?

What happens on day2 at -$500 loss?

I hear the term liquidation, does it have any relation to this?