The higher the leverage the higher the risk that is why it is better that you are well versed in trading when you enter leverage or margin trading. Margin is good because it can give you big profits if you trade correctly but if you failed and made a mistake then you could lose everything. You have to really keep an eye on the market to make sure your win and if you think the trend may go down then exit to avoid major losses
There is a theory on the ratio of the position size or leverage to profitability. It is not linear. The thing is to find optimal leverage/postion size.
You may have the same profits having x5 and x100 leverages, but in terms of risks these things are really different, obviously.
What is this theory?
