What leverage is used by FX hedge fund/FX prop traders in banks? | Forex Factory

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What leverage is used by FX hedge fund/FX prop traders in banks?

  • #1
  • First Post: Edited 2:59am Jan 17, 2012 1:45am | Edited 2:59am
Hi,

Just wounder if anyone knows what is the average leverage that is being used by fx traders trading for banks and what leverage use currency hedge funds.

Also what risk they take and how they enter/close positions?

Maybe somone can recommend some books on the subject, would be great.
  • #2
  • Jan 22, 2012 3:17am Jan 22, 2012 3:17am
  •  Gardezi
  • | Joined Apr 2011 | Status: Every little thing counts in Crisis | 10 Posts
Well, Really no body knows, how much 'Big boys' set the leverage, but Its one famous thing they only risk 1% or 3% max of their entire account. and keeping a position for long time may vary, I listen there are many who keep positions for even years or half year time.
  • #3
  • Jan 26, 2012 9:29am Jan 26, 2012 9:29am
For those interested, here we go

http://photos.streamphoto.ru/7/e/1/7...885743f1e7.jpg
  • #4
  • Jan 26, 2012 10:45am Jan 26, 2012 10:45am
Quoting dns_di
Hi,

Just wounder if anyone knows what is the average leverage that is being used by fx traders trading for banks and what leverage use currency hedge funds.

Also what risk they take and how they enter/close positions?

Maybe somone can recommend some books on the subject, would be great.
my company gave me account with


1:50

lev
Trade responsiblypatience is the key/Swing trader
  • #5
  • Jan 26, 2012 10:48am Jan 26, 2012 10:48am
Quoting Incrediblle
my company gave me account with


1:50

lev
Hedge fund or a bank or what company dude?
  • #6
  • Jan 26, 2012 11:02am Jan 26, 2012 11:02am
I once had this sheet with the leverage they were using, I just can't remember where I found it. But generally between 1-2.
  • #7
  • Jan 26, 2012 12:06pm Jan 26, 2012 12:06pm
Quoting dns_di
Hedge fund or a bank or what company dude?
pvt hedge fund....for private investors
Trade responsiblypatience is the key/Swing trader
  • #8
  • Jan 26, 2012 12:31pm Jan 26, 2012 12:31pm
Quoting Incrediblle
pvt hedge fund....for private investors
Yes, the doofus that has blown over 40 accounts now "works" for a hedge fund with private investors. AKA he put up another $100 account and is probably 1/2 way to blowing it... again. More likely they are using him as a contrarian indicator, when he goes long they short!



and if you believe that then he also has a bridge for sale in London and some prime Arizona beachfront property!
  • #9
  • Jan 26, 2012 1:27pm Jan 26, 2012 1:27pm
One of my bank friends (desk at one of the big 5 here in Canada) told me they get really tense meetings with their managers once positions get beyond 4-5:1 leverage in fx exposure. They are allowed to go that high, but they better have a good reason.

1-3:1 is average.


Personally, I don't usually use more than 30:1, and I find that level excessive... People asking for 500:1 leverage and cursing their local regulator for limiting them to 50:1 really bewilder me.
FXGears.com
  • #10
  • Jan 26, 2012 1:57pm Jan 26, 2012 1:57pm
with the funds that bigger banks have,most of them dont even need leverage sad but true
Inserted Video
watch this vid guy trades million like water.
  • #11
  • Jan 27, 2012 12:00am Jan 27, 2012 12:00am
Quoting traderjai_inhi
Yes, the doofus that has blown over 40 accounts now "works" for a hedge fund with private investors. AKA he put up another $100 account and is probably 1/2 way to blowing it... again. More likely they are using him as a contrarian indicator, when he goes long they short!



and if you believe that then he also has a bridge for sale in London and some prime Arizona beachfront property!
yeah why not......my open result challenge is still open for u and other @#$%

now be a man and face the challenge,now pls dont start pissing in ur pants

do let me know what u decide by PM
Trade responsiblypatience is the key/Swing trader
  • #12
  • Jan 27, 2012 2:10pm Jan 27, 2012 2:10pm
Yah, I was in the military and that is where I honed my bullshit detector and that is why I know that you are so full of it.

So why did you take all the systems off your myfxbook and you trade explorer here? Oh cause it showed that you really dont know what your doing huh? Werent you down like $1700 on your Zainy account? And yet you want to start a training academy after a whole week of not blowing your 40th account? Oh give me a break!

By the way, after looking at the last time you tried bragging about how great you think you are, you really dont know what you are doing! Anyone knows that if 23 pips equates to a 60% gain in your account you are under-funded and over-leveraged. But hey, that seems to be the incredibull way.

Good luck in blowing another acct, I know you can do it!
  • #13
  • Jan 27, 2012 2:22pm Jan 27, 2012 2:22pm
Quoting traderjai_inhi
Yah, I was in the military and that is where I honed my bullshit detector and that is why I know that you are so full of it.

So why did you take all the systems off your myfxbook and you trade explorer here? Oh cause it showed that you really dont know what your doing huh? Werent you down like $1700 on your Zainy account? And yet you want to start a training academy after a whole week of not blowing your 40th account? Oh give...
straight come to point @#$%

accept the challenge and let see who blows what....

if ever have the guts to face this challenge u are welcome to PM me
Trade responsiblypatience is the key/Swing trader
  • #14
  • Jan 27, 2012 3:11pm Jan 27, 2012 3:11pm
Quoting Jack_Larkin
One of my bank friends (desk at one of the big 5 here in Canada) told me they get really tense meetings with their managers once positions get beyond 4-5:1 leverage in fx exposure. They are allowed to go that high, but they better have a good reason.

1-3:1 is average.


Personally, I don't usually use more than 30:1, and I find that level excessive... People asking for 500:1 leverage and cursing their local regulator for limiting them to 50:1 really bewilder me.

Yup thats the thing isn't it, retailers are running against MM's banks, and other crims who will see what move they make. Further more the fact that they leverage more makes it easier to steal their money.

The thing is its hard to comprehend compounding and easy to understand that with $100 million you don't need leverage to make substantial gains in the dollar sense. With $10k your mind doesn't want you to make $10 gains and call it a day. We want to atleast increase the bet to make enough to counter a normal day job (few hundred bucks a day).... and that's over leveraged even for $10k.....

So retailers are really up against it, which is why 99% of them fail long term. Those that compound and follow strict guidelines and NEVER go against them MIGHT make it if they have a edge, so many if's but once they get it, you can quit work and live a good life once they make good money (over a few million).
  • #15
  • Jan 27, 2012 4:24pm Jan 27, 2012 4:24pm
Quoting Incrediblle
straight come to point @#$%

accept the challenge and let see who blows what....

if ever have the guts to face this challenge u are welcome to PM me
You working for a Prop Firm? which one? did you take the 56?
A woman drove me to drink, and I forgot to thank her
  • #16
  • Last Post: Jan 27, 2012 11:24pm Jan 27, 2012 11:24pm
Quoting simpleguy
you working for a prop firm? which one? Did you take the 56?

yes still on probation period
Trade responsiblypatience is the key/Swing trader
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