Contract Scaling Rule Explained

prop-firm

Definition

A rule limiting position size until the trailing drawdown threshold is reached. On Apex, traders can only use half their maximum allowed contracts until the EOD balance exceeds the trailing threshold. For a 50k account (max 10 contracts), that means 5 contracts max until the balance hits $52,600.

Explanation

This rule prevents new traders from using their full buying power immediately, forcing them to prove profitability before accessing maximum leverage. Once your account balance grows above the trailing threshold (original balance + static drawdown amount), the contract restriction is permanently lifted. This acts as a safety mechanism to protect both the trader and the prop firm from early large losses.

Example

On a $50k Apex account, you're limited to 5 contracts instead of the full 10 until your EOD balance reaches $52,600 ($50k + $2,600 static drawdown).

Why It Matters

It forces conservative position sizing early on, helping new funded traders avoid blowing their accounts with oversized positions.

Common Misconceptions

  • The contract limit resets if your balance drops back below the threshold

    Reality: Once you hit the trailing threshold, full contract access is permanent for that account