EDUCATION   BEGINNER GUIDE  

$1,000 Account, 100 Pips Against You. How Bad Can It Get? 💥

Beginner Guide  |  October 8, 2026  |  Source: Followme Academy

Same account, same trade, same 100-pip move against you. The only thing that changes is how much leverage you used. Each line below assumes the biggest position that leverage allows.

• 🟢 1:10 → down $100. Sore, but you're still trading
• 🟠 1:50 → down $500. Half the account gone in one session
• 🔴 1:100 → down $1,000. Account wiped out
• 💀 1:500 → down $5,000. Five times what you deposited

The scary part is that nobody forces you to use all of it. The leverage your broker offers is a ceiling, not a suggestion, and the Academy's guideline for new traders is 1:5 to 1:10 of effective leverage. It's also why regulators in the UK, EU and Australia cap retail leverage at 1:30.

Two terms to know before you meet them the hard way: a margin call is the alarm, and a stop out is when your broker starts closing your trades for you.

Full breakdown with margin examples and a leverage table here👇

Read the Full Guide

Disclaimer: Followme Academy content is provided for educational purposes only and does not constitute investment advice or a recommendation to trade. Trading leveraged products carries a high level of risk and may not be suitable for all investors.

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