Prop firm deposit 10-30k 100% payout?

Hi Don

the topic is leverage of 30- 1 daytrading bp / not overnight

bright does offer that to it's pro trader's right?

 

Don, at 30-1 overnight, a 300 basis pt move in a spread blows out the traders account. If you were trading the yield curve I could maybe see that, but stocks? So if FMCN opens down 80%, the trader would blow their account out 25 times over? And stocks never gap open right? Certainly not more then 3%?

 

topic in day trading buying power by poster

overnight different ballgame for all

 

FMCN "was" down 75% intra-day, not overnight.

 

the thread is about prop firms that offer 30-1 buying power ?

that is why you have hard stops to manage risk on every trade. anything can happen as you know

 

hold brothers trading www.onli.com

prop firm that has been around 15 yrs

 

Don,

Most stocks trade in synch, and a pairs trade (example: KO/PEP) doesn't work in this market since both are trading down. Inverse ETFs have gap risk and are designed for daytrading only.

So just curious on how a trader holds 30x their capital overnight "hedged of course" without blowing up in this market.

Thanks.

 

You're right, but hard stops can't prevent gap risk on overnights.

 

FMCN was halted twice intra-day.

 

There is absolutely no hedge that is going to save one from 30-1 or 40-1 leverage. Ask Jon Corzine.