Position Sizing Limits

Position sizing limits are the absolute maximum nominal value that a single user or account can hold in a specific contract. These limits are set to prevent any single entity from exerting too much influence on the market or accumulating enough exposure to threaten the exchange.

By capping the size of positions, the platform forces traders to diversify their risk or utilize multiple accounts, which increases the cost of building a massive position. These limits are often tiered, meaning they increase as a user completes more identity verification or meets higher capital requirements.