please i dont understand what liverage mean in forex a friend told me that it is mutiplied by the amount you invest that is if you invest 20 if their liverage is 200:1 then you will have 4000 to trade with is it true?

It took me two days to fully understood what leverage was all about to summarise the issue it's like they're giving you loan in order for you to make profit, so if you see 1: 200 leverage it simply means that in every one of your dollars they are multiplying your money by 200, for instance if you have 100 dollars as your real money your money automatically becomes 20,000 dollars. You may ask why leverage? it's because the changes in every currency is so little that forex will not be interested if leverage isn't attached.

ok thank you but if i trade with let say $1000 can i make up to $10 per pip.

vic4vi:

ok thank you but if i trade with let say $1000 can i make up to $10 per pip.

Yes, you can make even more than $10 per pip depending on how much worth of goods you purchase which depends on the leverage you chose but in a simple language the lot or volume you chose. Note! lot and leverage are two different things, try to read through my previous post to gain clear knowledge on what leverage is all about, You can endanger your self if you don't fully understand leverage and also try to read more forex books.