Please help explain different risk limits & leverage in prop trading?
To all the prop traders out there, I'm trying to understand limits and leverage in prop trading. It seems as if there is almost zero information out there on this. So, I'm wondering what are the norms for risk limits and for contract size in the futures trading prop business. For example, at your average prop group does a beginner in the treasury market start trading 1 contract with a daily loss limit of like $500? Where are the good traders who have a track record of 6 months of profitability (I know this is broad, but I'm only looking for general answers). Are successful traders on average trading 50 contacts, 100? I'd assume risk limits on 100 contracts in ZN would be about $10,000? What about the exceptional traders? Is trading 100-500 clips normal among the strong traders or is the upper limit of around 500 saved for only the exceptional traders? I know some traders even trading into the 1000's in ZN for example. Is this like the 1 in 1000 prop traders or what. I have no idea what position limits & risk limits are like in prop because no one talks about it. Would be great if someone could comment!
I'm looking at applying for a remote access position at propex in the future. Currently trading about 30 clips in ZN; I'm doing well, but I've only just started trading that size, so I'm working on building a 6-12 month track record trading this size.
If someone has some information about prop trading limits that'd be very useful. Thankyou