chipmunk, I know what you mean and I agree, because most traders gamble with leverage. But once I was posting along the same lines that you were and one guy made a valid point in which I want to share. You need less capital in your account at 500:1. This is what it is all about. Your yield is always based on your capital. If you trade the same way on a 50:1 account vs. a 500:1 account then which account would be better? Do you see the point? ES P. S. To further expound...since there is less money at risk and he gets a margin call...it's just to replenish the account. The net comparison to trading at 50:1 is the same. If he is a loser..he is still a loser...BUT if he has an edge more leverage is the way to go...Just look at the model Prop Shops offer for professional equity traders...they would not be able to extract money from the markets without leverage and fast tools. P.P.S. Drawing lines in the sand may be an unecessary evil.