Good risk management is at the core of prop trading. Managing the trading on your account to reduce the possibility of breaching the account is fundamental to the trading journey.
Traders need to learn how to manage the accounts so that they are trading within their account drawdown or maximum risk limits, are using appropriate trade sizes and understand how much margin they have available to trade.
Before receiving a simulated funded account, traders who reach their evaluation’s profit target undergo a risk management review.
What We Look For
- Trading within Margin limits
- Consistent position sizing across multiple trades
- Responsible use of leverage
- Trading patterns that demonstrate systematic decision-making
This review ensures the sustainability of your trading approach and protects both you and the trading community.
Margin Limit Table
| Account Size | Margin Limit |
| $5000 & below | 75% |
| $10,000 | 70% |
| $25,000 | 65% |
| $50,000 | 65% |
| $100,000 | 60% |
| $200,000 | 55% |
As an example, Clarity Series — $100,000 Account Size
Leverage: 1:30
Maximum Margin Utilisation: 60%
Margin Rule
On Opening Account Balance, Traders may utilise up to $60,000 of margin simultaneously across open positions.
As the account trades the available balance will move and hence, so will your margin. In tihs example, the clearer definition is that you may not use more than 60% of your account’s margin capacity at any one time.
