The Exposure Rule is designed to ensure responsible risk management and prevent excessive, high-risk trading behaviour.
This rule limits how much of your account can be exposed to risk at any one time.
Exposure is calculated using:
- Stop Loss placement
- Floating (unrealised) P&L
- Combined risk across all open trades
Exposure is assessed throughout the duration of the trade/trades and monitored continuously for as long as positions remain open.
If total exposure exceeds the permitted limit at any time, this constitutes a direct breach of the Exposure Rule and will result in an account violation.
1. What Is Exposure?
Exposure represents the maximum potential loss on all open positions at a given moment.
For each open trade, exposure is calculated as:
Exposure per Trade = (Max Stop Loss Risk and/or Floating Loss)
Total Exposure = Sum of Exposure across all open trades
This means:
- If a stop loss is placed, risk is calculated using the stop loss distance.
- If no stop loss is placed, or if the floating loss exceeds the defined stop loss risk, exposure will be determined using the floating loss.
Note for Traders - The excessive lack of Stop Losses can infringe on our “All or Nothing” Rule
2. How Exposure Limit Is Determined
Exposure limits differ by account type.
QT 2 Step– Evaluation
During evaluation, there is no fixed percentage cap per trade.
However, exposure must not exceed:
75% of the daily drawdown limit at any one time.
High-risk, “all-or-nothing” trading behaviour is not permitted.
The purpose of the evaluation is to demonstrate consistent risk management — not to pass through a single oversized trade.
QT 2 step – Funded
Maximum exposure allowed:
2.5% of the initial account balance
Exposure Limit = Initial Balance × 2.5%
This limit applies across all open trades combined.
QT 2 step Elite – Funded
Maximum exposure allowed:
2.5% of the initial account balance
Exposure Limit = Initial Balance × 2.5%
This limit applies across all open trades combined.
QT Instant Funded
Maximum exposure allowed:
2% of the initial account balance
Exposure Limit = Initial Balance × 2%
This limit applies across all open trades combined.
3. How We Calculate Trade Risk
When a stop loss is placed:
Trade Risk ($) = Stop Loss Distance × Position Size × Tick Value + Commissions
Where:
- Stop Loss Distance = price difference between entry and stop
- Position Size = lot size / contracts
- Tick Value = value per tick/point of the instrument
If no stop loss is placed:
- Exposure is determined using the current floating loss.
If floating loss exceeds stop-loss-defined risk:
- Exposure per Trade = Floating Loss
4. Real-Time Monitoring
Exposure is calculated continuously in real time.
This means:
- Exposure is not measured only at trade entry.
- If you widen your stop loss, exposure increases.
- If you remove your stop loss, exposure is based on floating loss.
If exposure exceeds the permitted limit at any time — even temporarily — this constitutes a breach.
Example 1 – Prime Funded
Account Size: $100,000
Exposure Limit: 2.5%
Exposure Limit = $100,000 × 2.5% = $2,500
Scenario A (Allowed)
- Trade 1 SL risk: $1,000
- Trade 2 SL risk: $1,200
Total Exposure = $2,200
Within limit ✅
Scenario B (Breach)
- Trade 1 SL risk: $1,800
- Trade 2 SL risk: $1,200
Total Exposure = $3,000
Exceeds limit ❌
Example 2 – No Stop Loss (Floating Loss Applies)
QT 2 Step
Account Size: $50,000
Exposure Limit: $1,250
Trade has no stop loss.
Floating loss reaches $1,300
Exposure = $1,300
Exceeds limit ❌
Instant Plan
Account Size: $50,000
Exposure Limit: $1,000
Trade has no stop loss.
Floating loss reaches $1,050.
Exposure = $1,050
Exceeds limit ❌
6. Important Clarifications
Stop Loss Adjustments
If a stop loss is widened, removed, or adjusted, exposure is recalculated immediately.
Traders cannot reduce exposure by temporarily placing tight stop losses and later widening them.
Hedging & Opposing Positions
Exposure is calculated based on total defined risk across all open trades.
Opposing positions do not automatically reduce exposure unless the defined maximum potential loss is reduced.
Multiple Positions on Same Instrument
Exposure is calculated across all trades combined — including multiple entries on the same instrument.
Commissions
All commissions must be included when calculating total exposure. Commissions count toward the exposure limit and must be factored into all exposure rule calculations.
Slippage
Slippage must be factored into all exposure and risk calculations. Orders may be filled at a different price than requested due to market conditions.
Stop-loss orders are not guaranteed fills. Once triggered, they become market orders and are executed at the next available price, which may result in a larger loss than anticipated.
Traders are responsible for accounting for slippage and execution differences when calculating risk and exposure.
7. Key Principles
- Exposure is calculated in real time.
- Exposure includes stop loss placement and floating P&L.
- Exposure applies across all open trades combined.
- Exposure limits must not be exceeded at any time.
- High-risk, “all-in” trading behaviour is not permitted.
- Commissions count toward the exposure limit.
- Stop-loss orders are not guaranteed fills
- Traders must factor slippage into risk and exposure.
The Exposure Rule exists to ensure:
- Sustainable risk management
- Professional trading behaviour
- Account protection
- Consistency over time
Summary
Prime Evaluation
→ Do not exceed 75% of daily drawdown in total exposure.
Prime Funded
→ Maximum 2.5% of initial balance exposed at once.
Exposure includes stop loss placement and/or floating loss.
Exposure is monitored in real time.
Breaches are applied automatically if limits are exceeded.