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06. Max Exposure Limits

Questions List

01. What is the max exposure limit?

The Maximum Exposure is the maximum lot size the trader can open at the same time during while trading. 

  • For example, if the max lot size a trader can open is 0.80 lots, then the trader can open 1st position on EURUSD 0.40 + 2nd position on NZDJPY 0.20 + 3rd position on GBPCAD 0.10 + 4th position on USDCHF 0.10. 
  • So the total lot size open at the same time would be 0.40 +0.20 + 0.10 +0.10 = 0.80. 

However, the trader can always open more than 0.80 lots after moving the stop loss to break even. 

For example, if the trader moves the stop loss of the previous trade [ EURUSD 0.40 lots ] to break even and covers the risk, then the trader will have another 0.40 lots new allowance. 

However, If the trader has 2 or more position open in the opposite direction on the same currency pair (hedging), it does not reduce the max exposure.


02. What is the maximum exposure (lot sizes) for the funding accounts?

The max exposure general rule for all accounts is 5:1. We look at lot size and not the actual $ value of a position. We calculate the max exposure based on the maximum lot size opened at the same time.

  • 0.25 lots for the $20K evaluation funded account.
    • For example, during the evaluation phase, the trader is allowed to open a max of 0.25 lots at the same time. Then, during the portfolio manager phase, the max exposure will grow relative to the account growth. This means the max lot size will be 1 lot (0.25 lot x 4) during the $20K fully funded account, then 2 lots (1 lot x 2) during the $40K fully funded account and so on …
  • 0.60 lots for the $50K evaluation funded account.
    • For example, during the evaluation phase, the trader is allowed to open a max of 0.60 lots at the same time. Then, during the portfolio manager phase, the max exposure will grow relative to the account growth. This means the max lot size will be 2.4 lots (0.60 lot x 4) during the $50K fully funded account, then 4.8 lots (2.4 lots x 2) during the $100K fully funded account and so on …
  • 0.85 lots for the $70K evaluation funded account.
    • For example, during the evaluation phase, the trader is allowed to open a max of 0.85 lots at the same time. Then, during the portfolio manager phase, the max exposure will grow relative to the account growth. This means the max lot size will be 3.4 lots (0.85 lot x 4) during the $70K fully funded account, then 6.8 lots (3.4 lots x 2) during the $140K fully funded account and so on …

03. Am I allowed to risk more than the max lot exposure?

Yes, you can under 1 condition. To move your stop loss to breakeven. For example, if you have reached the max lot exposure of 0.60 lots on open trades, and you moved the stop loss of all open trades to breakeven, then you would be able to open another 0.60 lots.

Please remember, the most important thing is to have a max of 0.60 risk at the same time for all the open positions combined.


04. What happens to the lot sizes very time an account is doubled?

The lot sizes also double to scale with the account.


05. Does my maximum exposure increase after a set period of time?

The Max exposure only increases when you move up in the account size.