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