Leverage size choice

heloo everybody

am a kind of new in the market. I've been confused about the choice of levearage sizes.I've been trading for about a month now with a leverage size of 1:500.I notice that whenever l place a trade, $40 margin is removed from my total equity, but on my second account where i use 1:100 i notice that more margin is required. PLS l'll like to know the best leverage size that suits an account below $2000.

Hoping to hear from you.

Myforexconcept

Here is the math given a $1000 account size:

500:1 Leverage : $1,000 account = $500,000 buying power
100:1 Leverage : $1,000 account = $100,000 buying power

The margin requirement of the 100:1 account is 5 times that of the 500:1. ( So in your example $50 margin in the 500:1 account would lead to $250 margin in the 100:1 account ).

Neither is necessarily better than the other, one just gives you more buying power. If you buy 1 mini lot in either account and gain 10 pips, the gain will be the same.

Check out this post from Diallist in the Beginner section on position sizing:

http://www.forexfactory.com/showpost...3&postcount=18

In this case he is using a $100,000 account but the math is correct and you can recalculate based on a $1,000 account.