and why would you want that additional money in your forex account? actually that $2,000 in your account would be fine with 1,000:1 as you have 190 pips to play with and your remaining $8,000 is sitting in your safe FDIC insured bank ready to get wired into your account if the need were to arise. so it is changing your risk there cause if your broker goes belly up you lose only the $2,000 and not the whole $10,000 ....
DislikedRight, so having that much leverage available only changes your margin requirement, it's not changing your risk?
It hard to do the next bit and keep to my word, I'm not finding fault, honest!
Why would you need that additional free margin if risk isn't increased?
For example say you had $10k in your account and were an aggressive trader risking 5% per trade with a 50 pips stop. Like you say a 100k trade at 50:1 would be 2k margin, and $100 at 1000:1. Why do you need to have that additional free margin, there's plenty available for that trade...Ignored