1:20 Leverage on a $2,000 account?
I am new to forex and I was just wondering what 1:20 leverage means when I have a $2,000 account?
I recently signed up for OANDA and selected a leverage of 1:20. If I deposit $2,000, and put my volume as 1.00, what does that mean?
How much money am I losing or gaining per pip?
Am I risking all my capital ($2,000) if I open a trade on a volume of 1.00 on 1:20 leverage?
I traded using eToro a couple of times and whenever I open a trade, I am able to select how much money I wish to use on a trade and select my leverage.
However, for OANDA on MT4, when I open a trade, it only asks for VOLUME, TP, and SL. Why am I unable to select how much money I wish to use to open the trade? What if I only wanted to use $1,000 instead of my $2,000?
I am really confused and any help would be appreciated.
So what is the difference between a mini and standard account? How do I know what account I have?