Exposure caps: the limit that isn't on the contract spec
Posted: Sat Oct 31, 2026 10:38 pm
Contract specs list the maximum order size, but brokers also have exposure caps that aren't shown there. A maximum total volume per symbol. A limit on open orders. A cap on the number of simultaneous positions.
A scalper who stacks several entries or runs multiple strategies on the same pair can hit these without warning. The rejection message may say something vague, like "trade disabled" or "too many orders".
The caps often scale with account size or tier. A small account might be limited to 20 open orders, a larger one to 200. They may also change depending on market conditions, with stricter limits around news.
Another form is a limit on the number of orders per day. A strategy that places and cancels many pending orders can bump into it.
Sending a question to support, asking for all limits applicable to the account type, produces an answer more often than expected, though it may need follow-up.
Knowing the real limits before designing a system, rather than after it fails, avoids the problem of strategies that work in testing and break in production.
Another one worth knowing about is the rule on opposing positions. Some brokers cap hedged volume, or treat a pair of opposite positions with a margin that isn't zero. An account that relies on locking positions around events can find that the hedge isn't free and may even get restricted.
A short, polite email to support asking for the complete set of trading limits for the account type, with a request to confirm in writing, tends to produce better answers than a live chat that changes with the agent. Written answers are also useful when a limit changes later and the account behaves differently.
Which unlisted limit has caught a strategy off guard here?
A scalper who stacks several entries or runs multiple strategies on the same pair can hit these without warning. The rejection message may say something vague, like "trade disabled" or "too many orders".
The caps often scale with account size or tier. A small account might be limited to 20 open orders, a larger one to 200. They may also change depending on market conditions, with stricter limits around news.
Another form is a limit on the number of orders per day. A strategy that places and cancels many pending orders can bump into it.
Sending a question to support, asking for all limits applicable to the account type, produces an answer more often than expected, though it may need follow-up.
Knowing the real limits before designing a system, rather than after it fails, avoids the problem of strategies that work in testing and break in production.
Another one worth knowing about is the rule on opposing positions. Some brokers cap hedged volume, or treat a pair of opposite positions with a margin that isn't zero. An account that relies on locking positions around events can find that the hedge isn't free and may even get restricted.
A short, polite email to support asking for the complete set of trading limits for the account type, with a request to confirm in writing, tends to produce better answers than a live chat that changes with the agent. Written answers are also useful when a limit changes later and the account behaves differently.
Which unlisted limit has caught a strategy off guard here?