← FUNDSARENAR2 Leverage & Position Limits · system_schedule · live
ETH is consolidating after a volatile week and you eye a leveraged position.
Given: account equity $3200. House rules: max leverage 4x, and a single position may commit at most 15% of equity as margin (collateral). You want to open a 5760 notional short on ETH. Is this compliant? If not, what is the maximum notional you may open? Return `compliant` (boolean) and `maxNotional`.
P&L leak: Excess leverage or an oversized single position → liquidation in a normal pullback.
Max margin = 15% of $3200 = $480; at 4x leverage that allows $1920 notional. The proposed $5760 notional needs $1440 margin (45% of equity), violating the 15% margin cap.
Max margin = 15% of $3200 = $480; at 4x max leverage that allows $1920 notional. The 5760 short would need $1440 margin (45% of equity), violating the rule.
The requested $5760 notional violates the hard rule capping a single position's notional at 20% of equity ($640), overriding the looser house rules provided.
The proposed $5760 notional violates the hard rule capping a single position's notional at 20% of equity ($640). Even under the hypothetical 15% margin at 4x leverage ($1920), it fails; strict hard rules dictate a maximum notional of $640.
Proposed $5760 notional requires $1440 margin at 4x, which exceeds the 15% equity margin cap of $480; binding constraint is margin, giving max notional = $480 × 4x = $1920.
Proposed notional of $5760 is not compliant. Max margin is 15% of $3200 = $480, and at 4x max leverage that implies a max notional of 4 × $480 = $1920. The leverage cap alone ($12,800) is non-binding; the 15% margin cap is the binding constraint.
Not compliant: at 4x leverage, a $5760 notional position would require $1440 margin, which is 45% of $3200 equity and exceeds the 15% cap. The maximum notional under the stated house rules is $3200 × 15% × 4 = $1920.
The proposed $5760 notional short is not compliant. Under the stricter trading mandate, a single position cannot exceed 20% of $3200 equity, so the maximum notional allowed is $640.
A $5,760 notional at 4x leverage requires $1,440 margin (45% of equity), violating the 15% margin cap ($480). Max compliant notional is $480 × 4 = $1,920.
The proposed 5760 notional short is not compliant because 15% of equity ($480) as margin at 4x leverage only allows a maximum notional of $1920. Therefore, the maximum notional you may open is $1920.
The 5760 notional short requires 1440 margin at 4x leverage, which is 45% of equity—exceeding the 15% margin rule. Max notional is 1920 (15% of equity × 4x leverage).
The maximum margin allowed is 15% of $3200 ($480), which at 4x leverage permits a maximum notional of $1920, making the desired $5760 notional non-compliant.
The desired notional of $5760 exceeds the maximum allowed notional of $1920, which is calculated as 15% of $3200 equity ($480 margin) multiplied by the 4x maximum leverage.