Question: How can I calculate the maximum lot size I can trade without going below the 150% margin level?
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Answer: Ensure your margin level stays above 150% to avoid margin calls and to prevent your account from being flagged for a possible hard breach. It’s important to calculate the appropriate lot size based on your account equity, the leverage of the instrument, the instrument's price, and the contract size. Below, we’ll guide you through two detailed examples—one for a $50,000 account and another for a $200,000 account—using different assets.

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A: Keeping your margin level above 150% helps ensure that you have sufficient free margin to withstand market fluctuations. Dropping below this threshold can lead to margin calls and result in your account being flagged for a potential hard breach

A: If your margin level dips below 150%, your account may be flagged for a hard breach. If the margin level continues to decline, you may face forced liquidation of positions to restore the required margin. Additionally, the risk team will assess your risk profile and, at their discretion, may deny your payout, reset your account back to Phase 1, or hard breach the account. As we strive to be the most sustainable prop firm in the space, it is essential that the risk profile of our funded traders aligns with the type of signals we aim to push into the live market. This is a key part of our long-term strategy as a broker-backed firm.
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A: Higher leverage allows you to control larger positions with a smaller margin. However, larger positions increase your exposure to market volatility, which can quickly reduce your equity and margin level.

A: Leverage varies by asset type:

A: If your equity changes due to open trade profits or losses, recalculate the appropriate lot size you can open or maintain safely. Regularly check your margin level and adjust your lot size if needed to avoid breaching the 150% level. You can use the calculation above or a margin calculator online while we work on implementing our own tool.

As of October 18th, 2024, the tables below provide approximate lot sizes that can be used as a reference for staying above the 150% margin level in both 1-step and 2-step challenges. These guidelines are based on the leverage offered: 1:30 for the 1-step challenges and 1:50 for the 2-step challenges in forex trading.

Please note, these are not maximum lot sizes but rather approximations intended to offer transparency regarding what we consider when reviewing trades. Keep in mind that fluctuations in price or using a lot size close to the suggested limit could still result in a margin call. In such cases, your account may be flagged for a potential hard breach.

While these guidelines aim to help you manage your risk, it’s crucial to actively monitor your margin level, especially in volatile market conditions, and adjust your lot sizes accordingly to prevent breaching the 150% margin level.

Note: These approximate lot sizes may vary due to price fluctuations and are calculated based on the account's initial balance. We are working on providing additional tools to help you determine a lot size that will further enhance the protection of your account.