These kind of leverages are risky to entire ecosystem, it puts both brokers and clients at imminent peril. I really don’t understand what broker is trying to achieve by offering these kind of stupid leverages, for sure it is not going to do any good to clients. I seriously doubt even if 1% using those kind of leverages can sustain in these markets for over an year.Every financial guru and history says the main reason for most of the crashes/bankruptcies etc is over leverage, even in current carona times even though all companies/sectors are affected but most severely effected companies are which are over leveraged in those sectors.
Also one bad event is enough to wipe out broker and all it’s clients, Imagine a day where there is disconnection or counter orders are still in system without execution or some bad news came where the option prices jumped 100 points in one tick, this can happen but a rare event, the risk to reward here definitely won’t favor those using these kind of mental leverages.
I personally opine traders should not build strategies which requires these kind of leverages to make money because all it takes is one bad trade to ruin their whole capital.
We are not against leverages but definitely with these kind of stupid leverages.