difference between leverage and lot size

[sherbertpips]

hello all,
sorry to seem so dim, but what would be the difference between

a) opening a position with lot size 0.1 on an acaount with 10:1 leverage
and
b) opening a position of lot size 0.01 on an account with leverage of 100:1 ???

I am stuck with an classic account, so min lot size 0.1, but want to effectively place smaller orders, like mini lots (0.01) and wonder if I change my leverage from 100:1 to 10:1 if this would do the same thing or am i missing a big point here?!

Thanks,

S.Pips

 

[Rossini]

It wont make a difference to you. More leverage available will only change the amount of margin that your broker requires. It does not change position sizing.

 

[Rhody Trader]

sorry to seem so dim, but what would be the difference between

a) opening a position with lot size 0.1 on an acaount with 10:1 leverage
and
b) opening a position of lot size 0.01 on an account with leverage of 100:1 ???

If both accounts consider a "lot" to be 100,000 units, then a 0.1 lot size is going to be ten times the size as the 0.01 lot size. You'd have to post the same amount of margin, but your risk in the first case would be 10x greater than in the second.

I am stuck with an classic account, so min lot size 0.1, but want to effectively place smaller orders, like mini lots (0.01) and wonder if I change my leverage from 100:1 to 10:1 if this would do the same thing or am i missing a big point here?!

Mini lots are generally considered to be 0.10, while micros are 0.01. That can vary by platform, though.

Regardless, unless there are functional differences between the 10:1 and the 100:1 accounts, the only meaningful differences between the two is that in the first you have to put up 10% margin and the second 1%.