However, say I thought 40 pips was a better place to place my S/L for this trade. Now we have
200 = 40 x 5 or yet another example
200 = 10 x 20
And I am considering 5:1 (or 20:1) leverage that's unacceptable. My question is Is your S/L completely dependant on your risk dimension? Since it look like it is. But doesn't that limit your trading options since you're stuck trading pips to keep your leverage reduced?