Risk Management
What is a Max Margin Rule and how does it cap my position size?
๐ 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
| Firm | Policy | Threshold | Consequence |
|---|---|---|---|
| PropXP | Max 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 |
Frequently Asked Questions
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