I calculate leverage based on the percentage gain my account would grow at 100pips.
(#lots) * (value per pip,per lot) * 100pips =((the amount of money you would earn after 100 pips))
And then [that number]/(account balance)
Then multiply by 100 for the percentage gain per 100 pips, aka, leverage amount.
EJ costs $42/lot, and is worth 9¢/pip.
If I have a $1000 account, I can buy 23 lots.[[Max #of lots]]
23 * .09 * 100 = $207
$207/$1000[my account bal] = .207
.207 * 100 = 20.7lev [Max]
Additionally, if I have a $1000 account, and I am trading EJ with 8lot entries, then
8 * .09 * 100 = $72
$72 / $1000 = .072
.072 * 100 = 7.2 : 1 lev
Which is sadly, too much leverage for my entries based on my skill level. (Unless I'm using OPM
I would be better off using 3lot entries, which works out to 2.7lev entries.
Also when I did the EJ Max lev math above, I used 23lots to get a max lev of 20.7 : 1 lev.
When I did that table I posted, I included the 0.x decimal place for all the pairs, i.e. 23.8 Max Lots EJ per $1000 equals 21.4 Max Lev.