Can I risk more than 3% of my capital in a single position?

Example – Rule Breach (Risk Exceeds 3%)

Initial balance: $100,000

Maximum risk per position: 3% = $3,000

Unrealized/Realized loss: $5,000

Since $5,000 exceeds the $3,000 limit, this position breaches the maximum risk rule.

If multiple trades in the same pair are opened within a short period (e.g., scalping), they may be grouped as a single net position.

If the combined loss exceeds 3%, the rule is considered breached.

Example – Within Risk Limit

Initial balance: $100,000

Maximum risk per position: 3% = $3,000

Unrealized/Realized loss: $2,500

Since $2,500 is below the $3,000 limit, the trader remains within the allowed risk parameters.

Important

A trader may allocate more than 3% of capital to a position, provided that the defined risk (stop-loss or realized/unrealized loss) does not exceed 3% of the account balance.