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What is a Max Margin Rule and how does it cap my position size?

๐Ÿ“Œ Quick Definition

A margin cap limits how much of your account you can commit as margin on a single instrument. PropXP, for example, caps margin use at 25% of account size per instrument โ€” single trade or combined simultaneous positions.

What is a Max Margin Rule and how does it cap my position size?

A margin cap limits how much of your account you can commit as margin on a single instrument. PropXP, for example, caps margin use at 25% of account size per instrument โ€” single trade or combined simultaneous positions.

Key Points

  • Caps the margin you may use on ONE instrument: single trade or combined across simultaneous positions on that instrument
  • PropXP: 25% of account size โ€” $100K account = $25K max margin on any instrument
  • Not a fixed lot-size limit: max lots = max permitted margin รท current margin-per-lot (check MT5 โ†’ Specifications โ†’ Margin per Lot)
  • Stacked positions on the same instrument count together toward the cap
  • PropXP applies the rule to all models: 1-Step, 2-Step, Instant Funding and funded accounts
  • Leave a safety buffer below the cap โ€” the margin shown at open time is what counts

Firm Comparison

FirmPolicyThresholdConsequence
PropXPMax 25% of account size as margin per instrument ($750 on $3K up to $50K on $200K); applies to 1-Step, 2-Step, Instant Funding and funded accounts; leverage: FX 1:50, Metals/Indices 1:25, Crypto 1:2, Stocks 1:10

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