In our continuous effort to promote responsible trading and ensure the stability of our trading environment, TopTier Trader is implementing significant changes to our overleveraging policy. Effective August 1st, 2024, we transitioned from our previous formula-based overleveraging rule to a new maximum lot size rule. This update is aimed at providing clearer guidelines for traders and enhancing risk management practices across our platform.
New Over-exposure Policy: Maximum Lot Sizes
The new policy introduces fixed maximum lot sizes based on account size and asset class. Below are the details of the maximum lot sizes allowed for commodities and metals, indices, cryptocurrencies, and forex:
Account Size | Commodities and Metals | Indices (1 contract size) | Crypto | Forex |
$5,000 | 0.30 lots | 3.00 lots | 0.10 lots | 1.00 lots |
$10,000 | 0.60 lots | 6.00 lots | 0.20 lots | 2.00 lots |
$25,000 | 1.60 lots | 16.00 lots | 0.50 lots | 4.00 lots |
$50,000 | 3.00 lots | 30.00 lots | 1.00 lots | 8.00 lots |
$100,000 | 6.00 lots | 60.00 lots | 2.00 lots | 16.00 lots |
$200,000 | 13.00 lots | 130.00 lots | 4.00 lots | 32.00 lots |
$300,000 | 19.00 lots | 190.00 lots | 6.00 lots | 50.00 lots |
Please note that the above limits are based on account sizes. Utilizing an account with double leverage will not increase the exposure limit for your account size. Do note that the exposure limits are evaluated on gross exposure per asset/symbol being traded.
Symbol-Level Application
The lot size limits for each asset class apply on a symbol level. For example, with a $5,000 account, a trader can place a maximum of 0.30 lots on a single commodity or metal. This means a trader can place 0.30 lots on Gold and still place another 0.30 lots on Silver because these are two different symbols within the commodities and metals asset class.
Please note that the new policy applies to all symbols, with the limits based on the asset class regardless of the pip value of the asset.
Merged Accounts and Custom Account Sizes
For merged accounts or account sizes not specified in the chart, the lot size limits will be based on the sum of the limits for the corresponding account sizes. For instance, if a trader has a $500,000 account, their limits would be the sum of the limits for the $200,000 and $300,000 account sizes.
Important Transition Information
To ensure a smooth transition, any trades placed before August 1st, 2024, will be governed by the old policy. Only trades initiated on or after August 1st will be subject to the new max lot rule. This grace period allows traders to adjust their strategies and become familiar with the new guidelines.
Implications of the New Rule
The new maximum lot size rule is designed to provide traders with a clearer understanding of their risk limits, making it easier to adhere to prudent risk management practices. By setting fixed maximum lot sizes, TopTier Trader aims to:
Mitigate Overleveraging Risks: Prevent traders from taking excessive risks that could lead to significant losses.
Enhance Trading Stability: Foster a more stable trading environment by encouraging responsible trading behaviors.
Simplify Risk Management: Provide clear and straightforward guidelines for traders to follow, reducing ambiguity and enhancing compliance.
TopTier Trader is committed to fostering a responsible and stable trading community. The implementation of the maximum lot size rule is a significant step towards achieving this goal.
Thank you for being a valued member of TopTier Trader. If you have any questions or need further assistance, please do not hesitate to contact our support team.