Overview
At Topstep, our mission is to help you become a better trader with healthier habits. Part of that commitment includes protecting your account during periods of extreme market volatility. When certain products experience unusually high volatility, we may temporarily adjust position limits to help you stay in the game long-term.
Why We Adjust Position Limits
Markets occasionally experience periods of extreme volatility characterized by:
Expanding price limits
Velocity Logic halts
Historic price ranges
Rapid price movement
During these conditions, even experienced traders face an increased risk of significant losses. By temporarily adjusting position limits, we're creating guardrails that help protect your accounts during unpredictable market conditions. This is about protection, not punishment. Our goal is to help you maintain your trading career by preventing catastrophic losses during chaotic market periods.
How Position Limits Are Adjusted
When a product is deemed high-risk due to volatility, we may implement one or both of the following adjustments:
Mini Contract Restrictions
Trading on mini-sized contracts or larger may be temporarily halted for affected products
Micro Contract Limits
Position limits for micro contracts are scaled based on your account size:
$50K accounts: Up to 5 micro contracts
$100K accounts: Up to 10 micro contracts
$150K accounts: Up to 15 micro contracts
When Do These Restrictions Apply?
Position limit adjustments are:
Temporary: Restrictions remain in place only while volatility levels are elevated
Product-specific: Only products experiencing extreme volatility are affected
Actively monitored: Our Risk Team continuously evaluates market conditions to determine when normal limits can be reinstated
What You Can Still Do
Continue trading with adjusted position sizes in affected products
Trade other products with standard position limits
Focus on risk management and strategic opportunities
Use this time to refine your trading plan and review your strategy
Understanding Market Volatility
Historic volatility means historic losses can happen faster than normal. When markets move unpredictably:
Slippage increases
Risk management becomes more challenging
Even well-planned trades can move against you quickly
These temporary adjustments give you the opportunity to participate in volatile markets while managing your risk appropriately.
How You'll Be Notified
When position limits are adjusted, you'll receive notification through:
Email communication
Dashboard banners
Social media updates (@AskTopstep on X)
We'll also notify you when restrictions are lifted and normal position limits are reinstated.
Have Questions?
Our Trader Support team is here to help. If you have questions about current position limits or how these adjustments affect your trading, please contact support.
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