As the saying goes, a picture is worth more than a thousand words:
Keep in mind that for a lower risk, you will require a larger minimum balance. This is because of the minimum trade volume, for example, if a user has a $100 USD account and trades at 0.01 lots, another user with $1,000 USD would trade at 0.10 lots to keep the positions proportional. However, if the $1,000 USD user trades at 0.01 lots, the $100 USD user can’t replicate the same risk level since no positions under 0.01 lots are allowed on most brokers.
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