I am a beginner in trading and as so I have a some silly questions lol
I have got £200 on my trading platform and today had a profit of £19 achieved on one single trade…
Does it mean if I have made exactly the same trade having £2000 I’d take profit of £190 and with £20000 - £1900??? Is that how it works? Multiplying the amount you put into a trade times 10 will give you 10 times bigger profit?
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Yes. But your losses can also scale similarly.
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Most probably your % profit will be less. Slippage will increase. So you may earn £189 or even £100 euro or even make a loss. Depends on the liquidity of the stock you are trading in.
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It’s one of the currencies in forex…
Why do you think the slippage would increase? We are talking about exactly the same position with just 10 times bigger investment? Wouldn’t it be the same result just 10 times bigger?
Just wondering before I decide to invest more money in trading…
I know I can loose my money obviously
my question is: if the trade went exactly the same way with £2000 on my account as with £200, would the profit be 10 times greater?
Obviously
No, that is now how this works. Your profit and loss can vary wildly from one trade to another. Volume does have effect on the price of the shares and in low volume shares liquidity can be low.
The volume can affect the price of the shares you’ve chosen to invest in. The profit and loss can depend on the liquidity of the share at that particular time.