Hi,
I was wondering if anyone knows how large an account can get, generally speaking, before a broker will insist on slashing your leverage. For example, small traders with 1k to 10k in their account have access to 1:50 leverage because it is trivial for a broker to leverage such small trades. I'm curious, since leverage is inversely related to one's account size, at what point your leverage begins to decrease. I know there are probably no "hard answers" to this since each broker uses their own discretion, however I'm assuming in the world of Forex their must be some general guidelines.
Examples
Account size of $10k - 1:50+ leverage no problem
Account size of $100k - 1:50 probably not an issue?
Account size of $1 million - ??
I'm also curious how things change if you move out of retail fx into using a prime brokerage, since they have direct access to such deep lines with the major banks (especially if they are a major bank)
For example
Account size of $10 million with Citi/FXAll/Deutsche Bank/etc prime brokerage service - How much leverage is granted?
I'm curious about all of this since the ability to profit aggressively drops off when you are forced to go from say 1:50 leverage to 1:25 or 1:10, so I'm wondering what is the maximum account size one can have and still have access to 1:50 leverage.
I'm also curious what strategies exist (if any) that would allow someone to continue to sustain their profit levels/monthly % even if their leverage is drastically cut.
I was wondering if anyone knows how large an account can get, generally speaking, before a broker will insist on slashing your leverage. For example, small traders with 1k to 10k in their account have access to 1:50 leverage because it is trivial for a broker to leverage such small trades. I'm curious, since leverage is inversely related to one's account size, at what point your leverage begins to decrease. I know there are probably no "hard answers" to this since each broker uses their own discretion, however I'm assuming in the world of Forex their must be some general guidelines.
Examples
Account size of $10k - 1:50+ leverage no problem
Account size of $100k - 1:50 probably not an issue?
Account size of $1 million - ??
I'm also curious how things change if you move out of retail fx into using a prime brokerage, since they have direct access to such deep lines with the major banks (especially if they are a major bank)
For example
Account size of $10 million with Citi/FXAll/Deutsche Bank/etc prime brokerage service - How much leverage is granted?
I'm curious about all of this since the ability to profit aggressively drops off when you are forced to go from say 1:50 leverage to 1:25 or 1:10, so I'm wondering what is the maximum account size one can have and still have access to 1:50 leverage.
I'm also curious what strategies exist (if any) that would allow someone to continue to sustain their profit levels/monthly % even if their leverage is drastically cut.
