Prop firm deposit 10-30k 100% payout?

Quote from Don Bright:

We slow people down (a lot) at 30 to one overnight (hedged of course). Some may "use" more intraday (openings etc.), but we have very few who need to use more than $500k with $30K or so.... again, we don't have a lot of "extreme" type players, most found their edge, and exploit it to a point that is still reasonable, risk wise.

All the best,

Don (I have my turkey already, thanks anyway, LOL).
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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%?
 
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
 
Quote from Don Bright:

We slow people down (a lot) at 30 to one overnight (hedged of course).
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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.
 
Quote from hitnrun:

that is why you have hard stops to manage risk on every trade. anything can happen as you know
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You're right, but hard stops can't prevent gap risk on overnights.
 
Quote from hitnrun:

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
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FMCN was halted twice intra-day.
 
Quote from ScalperJoe:

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.
More...

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