Leverage and Fund Withdrawal Question

Hi all,



I have recently started trading with the broker AGEA using MT4 platform. I have a question regarding leverage and profit withdrawal. See below for how this question arose.



I initially opened a cent account with AGEA which I put $10 of my own capital into. The account was using 1:100 leverage so my balance on the account was $1,000. After making some trades I grew this balance to $1,050. I then went to withdraw this money. I had my initial $10 deposit, plus had made $50 profit, so I thought I would be able to withdraw $60.

However when I went to withdraw this money, it said I could only withdraw a maximum of $10.50. i.e. my $10 deposit plus my profit which had been scaled back by 100:1.



I was under the impression that when you work with leverage, any losses will be scaled up and any profits will be scaled up. So if I trade 0.01 lots, I am trading $1,000, despite having only $10 capital. If I gain 50 pips on this trade, I have made $5 (1 pip = 10 cents on 0.01 lot) and made a 50% ROI. This profit can then be withdrawn. Similarly if I lose 50 pips, then I will lose $5 and have only $5 equity left. Do this again, and I will have no equity left and my account will be closed.



Is this correct or am I missing something here? If this is not the case, and leverage does not work like this, then I am struggling to see the point of it. What is the point of amplifying balances through leverage if the incremental profit you earned is going to be scaled back when you go to withdraw the funds?



Any help will be much appreciated



Thanks