it's simple. The greater leverage you utilize the more you're able to earn/loose with account equilibrium.Originally Posted by ;
For instance. With 1:50 you are able to manage to buy 1 lot - with 1:500 - 10 lots. If you buy only 1 lot it makes no difference if your leverage is 1:50 or 1:500, you'll loose same amount of money. But if you'll buy 10 lots, you loose/earn much more
also - let's say you spent 100% of your balance.
In 1:50 20 pips of complimentary will probably be approximately 7 percent of the balance
at 1:500 20 pips will signify a reduction of about 70 percent - makes a difference - doesn't it?
High leveraged accounts are not for fools, but a lot of fools utilize them.
Personally I adhere to 1:50 and will opt for greater lev. Just because I'm curious