How hard would it be to get 400:1 leverage on a $1,000,000 trade? I know it is incredibly stupid to use that much leverage, so please, no lectures. I just told a friend it could be done, and he doesn't believe me... Thanks
Do you mean 1:400 on a deposit of 1 mio, or just 1:400 on a 1 mio trade (so for example 10 lots USD/JPY). Both is possible, but last is easy.
Care to elaborate? As in dealer name. I say, no chance in hell, in a single transaction. Only some forex market makers offer 400:1... and a couple lovely Swiss gems 500:1. No MM I know of allows trade size more than 10, 20 Mio, tops. Some ECNs offer liquidity in some pairs a lot more than that... but good luck getting anything above 100:1, at best.
I'm assuming he means 400:1 on margin of 1 mil, which would make for a 400 mil position. Not happening. I'm sure you can get 400:1 on margin of 500 dollars, but 400:1 on 1 mil is unheard of.
no retail market maker would be able to give you 400:1 on one trade of a million, which would mean opening a 400 million position,,, the most I have heard of at a broker, even through a phone is 60 million, and that's at 100:1,,, not sure about ECN's though.