This rule is placed to ensure that traders are able to maintain consistent profitable trading without risking unnecessary large amounts of balance.
You must keep your margin per trade less than 2% from your current balance (e.g. with balance 2500$ your maximum margin per trade should not exceed 50$).
How to calculate Max Margin?
In order to calculate max allowed margin, traders can use this formula:
Margin = (Position Size x Contract Size x Price) / Leverage
The margin required to open a position is calculated based on the position size, the standardized contract size, and the leverage. Margin represents the amount of capital needed to maintain a trade.
Max Margin for different account sizes:
| Account Balance (USD) | Max Position Size (USD) |
| 2,500 | 50 |
| 5,000 | 100 |
| 10,000 | 200 |
| 20,000 | 400 |
| 50,000 | 1000 |
| 100,000 | 2000 |
| 200,000 | 4000 |