Prop Firm Leverage Explained: 1:10 vs 1:100

Leverage is one of the most misunderstood concepts in prop trading. Here's how to think about it correctly.

Leverage by Firm

| Firm | Forex | Indices | Crypto |

| FTMO | 1:100 | 1:20 | 1:2 |

| The 5%ers | 1:30 | 1:10 | N/A |

| FundedNext | 1:100 | 1:20 | 1:2 |

| E8 Markets | 1:100 | 1:20 | 1:5 |

High Leverage (1:100)

Pros

• Trade larger positions with smaller margin
• More flexibility in position sizing
• Better for scalping strategies

Cons

• Easier to blow the account if undisciplined
• Requires strict risk management

Low Leverage (1:10-1:30)

Pros

• Forces disciplined position sizing
• Harder to make catastrophic mistakes
• Better for swing trading

Cons

• Limited position sizes
• May not suit scalping