Position Limits
Your maximum position size is determined by your account’s equity and platform-specific restrictions. This ensures that trades remain proportional to your account size and manageable within the platform's risk framework.
How It Works:
Larger accounts allow for higher position limits, but all trades must align with platform guidelines.
Position limits help prevent overleveraging, which can quickly lead to breaches of drawdown limits.
Why It’s Important:
Keeps risk exposure under control.
Promotes disciplined trading practices.
Overnight Positions
All positions must be closed before the market closes to prevent penalties or account violations.
Key Rule:
Deadline: All trades must be closed by 3:59 PM EST.
Impact: Positions left open after this time are at your own risk and can lead to account balance changes due to after-hours price movements.
Why This Rule Exists:
Overnight positions are riskier due to limited liquidity and unpredictable market movements during after-hours trading.
This rule ensures that accounts remain protected from overnight volatility.
Final Note on Risk Management
By following these risk management rules, you’ll not only protect your account from unnecessary losses but also build the foundation for consistent, sustainable trading success. For questions or more details about these rules, contact support@vanquishtrader.com.