Anyone forex trading here

[Anonymous No.24319795]

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?

[Anonymous No.24319862]

Truly the worst post I’ve seen on biz and I’ve seen a lot

[Anonymous No.24319931]

One of the cringiest post ever yes. Btw I will give u an answer, leverage are not free money. If you use leverage there will be a liquidation price, when you get liquidated you lose all the money you put in the trade, major the leverage more close the liquidation price to the entry price of your trade. Also with leverage your profit will be more but your loses to in fact of %

[Anonymous No.24319959]

>>24319795
You always have to be able to pay everyone back, that's what liquidation is. So if you have 1k and borrowed 50k, your assets are worth 51k, if the total of those assets hits '50k' you get liquidated so the people who lent you money don't lose anything.
Thats why with 50x leverage a 2% move down liquidates you, because 51k * 0.98 = 50k aka you have to pay everyone back.

[Anonymous No.24320565]

>>24319959
thanks, I get the idea now

so lesser leverage like 3x should let me have more
room for negative price , I think up to -25%

[Anonymous No.24320624]

>>24319795
>What happens on day2 at -$500 loss?

It's over.

[Anonymous No.24321691]

you have to pay interest on the 50k, every single day, dont forget that. if it moves down by two percent you will be liquidated. your 1000 becomes zero.

you need to learn, much much more before you start. read up, watch youtube.

start with smalllllll capital. you will lose and make mistakes along the way.

[Anonymous No.24322004]

>>24320565

leveraged traders usually never go underwater. they cut the loses ASAP

the tight stop-loses is the name of the game
tight as teenage pussy

[Anonymous No.24322014]

>>24321691

this nigga gets it

by the way, which youtube videos?

[Anonymous No.24322107]

>>24319795
a 6 cent change in price in one day doesnt happen in forex.

do a bit of research on lot sizes and cost per pip.