Excellent post Billflet!
Pipmutt I will try again, in the example $10,000 account, you would be using 5:1. 50k position divided by 10k balance. Ok, now if you take a $10,000 account even at 10:1 leverage you would need between $5,000 and $8,000 of margin to place the trade depending on the currency you're trading. And thats all you would be able to place at the same level, even if the risk to your account is 1% because you have a 20 pip stop loss you still wouldn't be able to place another trade of the same size until that one is out, so you wouldn't even need to be a trader that has multiple trades in, anybody who puts more than 1 trade in at a time even with minimal risk to their account will be affected.
Pipmutt I will try again, in the example $10,000 account, you would be using 5:1. 50k position divided by 10k balance. Ok, now if you take a $10,000 account even at 10:1 leverage you would need between $5,000 and $8,000 of margin to place the trade depending on the currency you're trading. And thats all you would be able to place at the same level, even if the risk to your account is 1% because you have a 20 pip stop loss you still wouldn't be able to place another trade of the same size until that one is out, so you wouldn't even need to be a trader that has multiple trades in, anybody who puts more than 1 trade in at a time even with minimal risk to their account will be affected.