Just got off the phone with a bud of mine. He's a prop trader. The issue of ForEx came up -- an area I know nothing about. He started to tell me that he enjoys up to 1200:1 leverage on ForEx traders. I smelled bullshit at first but since I know very little about ForEx I can't tell for certain if he is pulling my leg or not. Anyone know for certain. I assume a prop firm could set the leverage to whatever they want but 1200:1 seems outrageous.
Could you tell me the name of a prop forex shop, besides the one that used to advertise here? (GlobalFXLLC) Michael B.
Most i have ever heard of was 200:1 also. I personally think using 100:1 leverage is way too much myself I cant imagine 1200:1 You'd most likely get wiped out in 10 minutes. If you got a 4 pip spread in the price when you buy, your account is down 40% right off the bat. What kind of suicidal fool would use that kind of leverage. 6 pips against you after that and you are bankrupt.
Scalping forex with 100:1 leverage and up is glorified gambling Try it for awhile and see your account dwindle away in a days. Money is in the trends in any market and with futures equities commodities and forex i sure hope you can find something that is trending.