Answer
A "pip" is the last "percentage in point" quoted for the exchange rate.
Example: Canadian / US exchange rate
1.0553...if the rate changes to 10554 it has increased "one pip".
FYI - here $1USD buys 1.0553 $Canadian
Some currencies are quoted to 5 (or more) places after the decimal point, the last place is the pip.
E.g. The Hong Kong dollar: 0.136082, and the Yen is quoted differently, see below.

consider this from: http://madmin.hubpages.com/hub/What-is-Pip-in-FOREX-Trading
A âpipâ stands for âPercentage in Pointâ. A pip is the smallest price movement of a traded currency. It is also referred to as a âpointâ.
For most currencies a pip is 0.0001 or 1/100 of a cent. You may think it is a ridiculously low value. However, take into account that most currencies are traded in lots of $100 000. For that amount a pip is $10.

When a currency moves from a value of 1.4511 to 1.4514, it moved 3 pips. When a pip has a value of $10, you have gained $30.

There is an exception for quotations for Japanese Yen against other currencies. For currencies in relation to Japanese Yen a pip is 0.01 or 1 cent. Then if you are trading USD/JPY in $100 000 lots, one pip will be equivalent to $1000.

How to change the leverage in metatrader from 1:100 to 1:10 ?

hi all
i downloaded and installed metatrader 4.0
after installing i enter my information into demo account with leverage 1:100

i now want to change this to 1:10
where exactly i can do that ?
i don't see any option of changing leverage in metatrader

thanks in advanced

Answer
Dear Alex!

Don't know why you would want to change that and I am not sure it can be done.

To manage your risk, both in demo and live accounts you need to do the following:

1.) decide how much you want to risk on each trade, i.e. 1 %, 2 %, 5 %,
(If you want to risk more, you probably should not be trading Forex)
2.) decide how many pips you want your stop to be (how much do you want to risk)
3.) decide how much each pip is worth, i.e. on the eur/usd paid, a 1.0 full) lot = $ 10.00 per pip
a 0.1 (mini) lot = $ 1.00 per pip, a 0.01 (micro) lot = $ 0.10 per pip.
4.) use the following formula to determine how many lots (micro - mini or full) you can trade:

Amount you want to risk i.e. $ 1,000.00 balance x 2 % = $ 20.00 per trade
divided by stop loss in pips i.e. : 0.0030 (30 pips stop)
equals position size
OK, this is how it looks:
$ 1,000.00 x 2 % = $ 20.00
$ 20,00 : 0.0030 = $ 6,700.00 rounded
$ 6,700.00 = 0.07 lots you can enter for this trade.

No worry about leverage the broker offers.

Hope this helps and good luck with trading.

Sincerely
Louis