The Overexposure Rule limits how much of your available margin can be used at any time. At thePropTrade, traders must not use 70% or more of their available margin across all open positions combined.

This limit applies to total margin usage, not to the margin of a single trade. Exceeding this threshold at any point is considered a hard breach.

Exceeding this limit is considered a hard breach.

Why do we apply this rule?

The purpose of the Overexposure Rule is to protect traders from excessive risk and prevent accounts from becoming dangerously over-leveraged. Although you have full flexibility in your lot size, trade direction, and strategy, you may not commit the majority of your margin in a way that exposes your account to extreme risk.

Using 70% or more of your margin indicates that your account is taking on excessive exposure, which goes against our risk management standards.

Important distinction:

• Evaluation Phase: You have a tolerance of one overexposure breach.
• Funded Account: Using 70% or more margin is a hard breach and can affect payouts or account status.

Important: This rule is not automated. It is reviewed manually, especially before funded account approval and before processing payouts.