diff --git a/freqtrade/freqtradebot.py b/freqtrade/freqtradebot.py
index df62305f5..d0db65e95 100644
--- a/freqtrade/freqtradebot.py
+++ b/freqtrade/freqtradebot.py
@@ -866,8 +866,12 @@ class FreqtradeBot(LoggingMixin):
                 entry_tag=entry_tag, side=trade_side
             )
 
-        stake_amount = min(stake_amount, max_stake_amount)
-        stake_amount = self.wallets.validate_stake_amount(pair, stake_amount, min_stake_amount)
+        stake_amount = self.wallets.validate_stake_amount(
+            pair=pair,
+            stake_amount=stake_amount,
+            min_stake_amount=min_stake_amount,
+            max_stake_amount=max_stake_amount,
+        )
 
         return enter_limit_requested, stake_amount
 
diff --git a/freqtrade/optimize/backtesting.py b/freqtrade/optimize/backtesting.py
index 701db34eb..56894e13b 100644
--- a/freqtrade/optimize/backtesting.py
+++ b/freqtrade/optimize/backtesting.py
@@ -553,7 +553,7 @@ class Backtesting:
         propose_rate = min(max(propose_rate, row[LOW_IDX]), row[HIGH_IDX])
 
         min_stake_amount = self.exchange.get_min_pair_stake_amount(pair, propose_rate, -0.05) or 0
-        max_stake_amount = self.exchange.get_max_pair_stake_amount(pair, propose_rate, -0.05) or 0
+        max_stake_amount = self.exchange.get_max_pair_stake_amount(pair, propose_rate, -0.05)
         stake_available = self.wallets.get_available_stake_amount()
 
         pos_adjust = trade is not None
@@ -570,7 +570,12 @@ class Backtesting:
                 max_stake=min(stake_available, max_stake_amount),
                 entry_tag=entry_tag, side=direction)
 
-        stake_amount = self.wallets.validate_stake_amount(pair, stake_amount, min_stake_amount)
+        stake_amount = self.wallets.validate_stake_amount(
+            pair=pair,
+            stake_amount=stake_amount,
+            min_stake_amount=min_stake_amount,
+            max_stake_amount=max_stake_amount,
+        )
 
         if not stake_amount:
             # In case of pos adjust, still return the original trade
diff --git a/freqtrade/wallets.py b/freqtrade/wallets.py
index 98a39ea2d..e6939a7d9 100644
--- a/freqtrade/wallets.py
+++ b/freqtrade/wallets.py
@@ -238,12 +238,12 @@ class Wallets:
 
         return self._check_available_stake_amount(stake_amount, available_amount)
 
-    def validate_stake_amount(self, pair, stake_amount, min_stake_amount):
+    def validate_stake_amount(self, pair, stake_amount, min_stake_amount, max_stake_amount):
         if not stake_amount:
             logger.debug(f"Stake amount is {stake_amount}, ignoring possible trade for {pair}.")
             return 0
 
-        max_stake_amount = self.get_available_stake_amount()
+        max_stake_amount = min(max_stake_amount, self.get_available_stake_amount())
 
         if min_stake_amount > max_stake_amount:
             if self._log:
diff --git a/tests/optimize/test_backtesting.py b/tests/optimize/test_backtesting.py
index acd1fe3b4..ca1d20cfb 100644
--- a/tests/optimize/test_backtesting.py
+++ b/tests/optimize/test_backtesting.py
@@ -548,6 +548,11 @@ def test_backtest__enter_trade(default_conf, fee, mocker) -> None:
     assert trade.stake_amount == 495
     assert trade.is_short is True
 
+    mocker.patch("freqtrade.exchange.Exchange.get_max_pair_stake_amount", return_value=300.0)
+    trade = backtesting._enter_trade(pair, row=row, direction='long')
+    assert trade
+    assert trade.stake_amount == 300.0
+
     # Stake-amount too high!
     mocker.patch("freqtrade.exchange.Exchange.get_min_pair_stake_amount", return_value=600.0)
 
diff --git a/tests/test_wallets.py b/tests/test_wallets.py
index 3e02cdb09..369197f6b 100644
--- a/tests/test_wallets.py
+++ b/tests/test_wallets.py
@@ -180,23 +180,31 @@ def test_get_trade_stake_amount_unlimited_amount(default_conf, ticker, balance_r
     assert result == 0
 
 
-@pytest.mark.parametrize('stake_amount,min_stake_amount,max_stake_amount,expected', [
-    (22, 11, 50, 22),
-    (100, 11, 500, 100),
-    (1000, 11, 500, 500),  # Above max-stake
-    (20, 15, 10, 0),  # Minimum stake > max-stake
-    (9, 11, 100, 11),  # Below min stake
-    (1, 15, 10, 0),  # Below min stake and min_stake > max_stake
-    (20, 50, 100, 0),  # Below min stake and stake * 1.3 > min_stake
+@pytest.mark.parametrize('stake_amount,min_stake,stake_available,max_stake,expected', [
+    (22, 11, 50, 10000, 22),
+    (100, 11, 500, 10000, 100),
+    (1000, 11, 500, 10000, 500),  # Above stake_available
+    (700, 11, 1000, 400, 400),  # Above max_stake, below stake available
+    (20, 15, 10, 10000, 0),  # Minimum stake > stake_available
+    (9, 11, 100, 10000, 11),  # Below min stake
+    (1, 15, 10, 10000, 0),  # Below min stake and min_stake > stake_available
+    (20, 50, 100, 10000, 0),  # Below min stake and stake * 1.3 > min_stake
 
 ])
-def test_validate_stake_amount(mocker, default_conf,
-                               stake_amount, min_stake_amount, max_stake_amount, expected):
+def test_validate_stake_amount(
+    mocker,
+    default_conf,
+    stake_amount,
+    min_stake,
+    stake_available,
+    max_stake,
+    expected,
+):
     freqtrade = get_patched_freqtradebot(mocker, default_conf)
 
     mocker.patch("freqtrade.wallets.Wallets.get_available_stake_amount",
-                 return_value=max_stake_amount)
-    res = freqtrade.wallets.validate_stake_amount('XRP/USDT', stake_amount, min_stake_amount)
+                 return_value=stake_available)
+    res = freqtrade.wallets.validate_stake_amount('XRP/USDT', stake_amount, min_stake, max_stake)
     assert res == expected