Max Contracts

Trading Rules & Restrictions

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According to Vigil's prop trading glossary, Max Contracts is 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. In prop trading, understanding max contracts is critical because it directly affects your drawdown limits, position sizing, and whether you pass or fail an evaluation.

This term is part of the full prop firm glossary.

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How does max contracts work?

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.

These 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.

For 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.

What does max contracts look like in practice?

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.

Why does max contracts matter for prop firm traders?

Max Contracts rules vary between firms. What is allowed at one firm can be a violation at another. Always verify before your first trade on a new account.

Practical example across firms: FTMO: 2-step, static drawdown, 5% daily loss, from €155. TopStep: 1-step, trailing drawdown, 2% daily loss, from $49.

Common mistake: The most common mistake with max contracts: carrying habits from one firm to another without rechecking. Max Contracts rules can differ between firms and even between evaluation phases at the same firm.

How do different firms handle max contracts?

Understanding max contracts is essential when choosing and trading with a prop firm. Compare how different firms handle this:

What terms are related to max contracts?

Position Sizing

The process of determining how many contracts, lots, or shares to trade per position based on your account size, risk tolerance, and the distance to your stop-loss. Proper position sizing is the foundation of risk management.

Lot Size

The standardized quantity of a financial instrument in a single trade. In forex, 1 standard lot = 100,000 units of the base currency. In futures, lot size varies by contract (1 ES = $50/point, 1 NQ = $20/point).

Leverage

The ratio of trading exposure to actual capital required. In forex, leverage can be 1:100 or higher, meaning $1,000 controls $100,000 of currency. In futures, leverage is built into the contract specification through margin requirements.

Risk Per Trade

The maximum dollar amount or percentage of account balance you are willing to lose on a single trade. Most prop firm traders risk 0.5-2% per trade to ensure they can withstand losing streaks without breaching drawdown limits.

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Where can I learn more?

How to Pass FTMO $200,000

Step-by-step guide

How to Pass TopStep $150,000

Step-by-step guide

How to Pass Apex Trader Funding $300,000

Step-by-step guide

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TopStep Trust Score

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