Is this usually included in any paperwork that you sign with the prop firm. For example, lets say you come to agreement with a firm that they will provide X amount of BP for Y amount of risk deposit. Shouldn't this be put in the contract somewhere?
Some firms may limit you to a "x times deposit" amount for "BP." Our brand new people sign that they are limited to 10,000 shares overall (just to begin with)... whether it's a $15 stock or a $70 stock makes little difference. Hence, we don't have a limited amount of BP in that sense. And, many use a $million or more with $20K or so with opening only or other types of strategies. We do try to slow people down at about 30 to one overnight (hedged).... we do our best to protect the traders from themselves. Some firms are more limited in their capital, thus have to limit their traders to smaller amounts, and in that case, yes, you should probably have a set amount disclosed to you, IMO. FWIW, Don
I've seen quite a few contracts and BP was never stated on the contract, it was usually agreed on verbally or on a separate online sheet. BP is one of those variables that can be changed arbitrarily at most prop firms.
For me, this is a REALLY important part of the contract. I would not accept to see BP changes without my approval. If a firm can't commit to what they agreed on, this is not good enough for me. My prop firm specifies it in the contract and never had a problem with it.
I've never heard of someone getting their BP lowered, not at the majors in Canada anyway. The only change they would make would be up, and that usually never happens unless you request it.
agreed 100% Ive been with a few firms and I have never seen it. most firms will give you what you want I have noticed