{"term":{"slug":"max-contracts","term":"Max Contracts","definition":"The maximum number of futures contracts or forex lots a trader can hold simultaneously, as specified by the prop firm rules. This limit prevents excessive exposure and protects against catastrophic losses.","extendedExplanation":"Max contract limits vary by account size and firm. For futures prop firms, the limits are specified per instrument. A $50K TopStep account might allow up to 5 ES (E-mini S&P 500) contracts or 50 MES (Micro E-mini) contracts. Larger accounts proportionally allow more contracts.\n\nThese limits apply to total open positions, not per-trade. If your max is 5 ES contracts and you have 3 long, you can only open 2 more (in either direction). Some firms count hedged positions differently -- having 3 long and 2 short might count as 5 contracts or as 1 net contract, depending on the firm.\n\nFor forex prop firms, limits are typically expressed as maximum lot size. FTMO does not impose a hard lot limit but your position size is naturally constrained by margin requirements and drawdown rules. Traders should calculate the maximum position size that keeps their risk within daily loss limits.","exampleWithNumbers":"TopStep $50K: max 5 ES contracts (or 50 MES). Each ES contract has $50/point value. A 20-point adverse move on 5 contracts = $5,000 loss. With a $1,000 daily loss limit, max contracts at 20-point stop means you can only trade 1 ES contract (20 * $50 = $1,000 = daily limit). Using max contracts with any meaningful stop would blow the daily limit.","category":"trading","relatedTerms":["position-sizing","lot-size","leverage","risk-per-trade"]},"_links":{"self":"https://runvigil.app/api/glossary/max-contracts","page":"https://runvigil.app/learn/max-contracts","allTerms":"https://runvigil.app/api/glossary","learn":"https://runvigil.app/learn"}}