Hi there,
I am testing some strategies and I have a small account with $1,000 and I would like to risk let's say the famous 2% per trade. However I can't risk more that 0.5% and not sure why...
I have a 20:1 leverage offered by my broker ( I can't change the leverage).
I usually have a stop loss of about 10 pips.
So in theory I would like to risk 2% of $1,000 equal $20 so I can risk $2 per pip.
However the max lot size allowed by my broker is 0.05. Anything above that will have the signal that I don't have enough money in the account.
I understand that my position is larger as I have 20:1 leverage and that the stop loss doesn't influence the exposure and a possible margin call.
But I wonder how other traders can risk 2% or 10% on each trade if they will have the same limitation on the amount in the account.
Can anyone explain what am I missing?
Thank you!
I am testing some strategies and I have a small account with $1,000 and I would like to risk let's say the famous 2% per trade. However I can't risk more that 0.5% and not sure why...
I have a 20:1 leverage offered by my broker ( I can't change the leverage).
I usually have a stop loss of about 10 pips.
So in theory I would like to risk 2% of $1,000 equal $20 so I can risk $2 per pip.
However the max lot size allowed by my broker is 0.05. Anything above that will have the signal that I don't have enough money in the account.
I understand that my position is larger as I have 20:1 leverage and that the stop loss doesn't influence the exposure and a possible margin call.
But I wonder how other traders can risk 2% or 10% on each trade if they will have the same limitation on the amount in the account.
Can anyone explain what am I missing?
Thank you!