I was wondering about the fact that all over the internet there is a big hype about not using high Leverage. Especially if you are a beginner. I decided to only use 1:10 leverage on my back testing software. That caused a insufficient funds pop up when I tried opening a second trade. “Not enough Margin available”.
What I then did was move my Leverage to 1:100 and had no problem opening another trade. Long story short I started playing around with the leverage and found that it did not matter if my Leverage was 1:5 or 1:300 I still just lost 1% of my balance when my Stop-Loss got hit, using 1% risk of my account balance.
On the contrary I had way way more Free Margin at 1:300 Leverage than 1:5 Leverage.
The Margin Required for the open a trade position was also way less on the larger Leverage.
So more Leverage is way better that what is been said on hundreds of Forex websites to keep your leverage low or it will ruin you and blow your account.
Just want to ask if this is right what I found to be the case or am I missing something and my Software I am using is faulty.
Thanks for the responses in advance.