FTMO is an online prop firm that offers funding to traders who are able to pass their evaluation process. Once traders pass the evaluation, they are provided with a funded account to trade with. FTMO offers various account sizes, and each account has a different maximum loss limit that traders must adhere to. This means that traders can only lose a certain amount of the account’s capital before their trading is suspended.
In terms of leverage, FTMO offers up to 1:100 leverage for forex trading, which is a standard level of leverage for most forex brokers and prop firms. This means that traders can control a larger amount of money in the market with a smaller amount of capital. However, it’s important to note that high leverage can also magnify losses if not used properly, so it’s important for traders to have a solid risk management strategy in place.
FTMO also offers lower leverage for other markets, such as commodities and indices, with a maximum of 1:20 leverage. This is due to the higher volatility and risk associated with these markets.
It’s worth noting that while FTMO offers leverage, it’s not the primary focus of the firm. Their main objective is to find skilled traders who can consistently make profitable trades, and provide them with a funding opportunity to further grow their trading capital. This is why they have strict evaluation criteria to ensure that only the most skilled traders are given the opportunity to trade with their capital.