TradeDay Position Limits: Contracts vs Micros Explained

Written by Paul

Published on

January 17, 2026

I violated TradeDay's position limits during my second evaluation without knowing I'd done it. I was trading MES (micro ES) and scaled into a position: entered 5 micros, added 3 more when it moved in my favor, then added 2 more at the next level. Total position: 10 micros. Profitable trade, felt great.

Three hours later my account terminated. Reason: "Position limit exceeded."

I thought I was trading safely—10 micros is tiny compared to my $50K account size. But TradeDay's position limits aren't based on dollars at risk. They're based on contract counts per instrument, and 10 micros on a $50K account violates the rule by 100%. The limit is 5 micros OR 1 mini—not 10 of anything.

This guide breaks down TradeDay's exact position limits by account size, explains the difference between standard contracts and micros, covers why these limits exist (and why they're stricter than you think), and shows you how to size positions strategically without accidentally blowing up your evaluation. I'm covering the mechanics TradeDay doesn't explain clearly until you've already violated them.

Quick heads-up: This article is based on my real experience with TradeDay and the info available when I published/updated this. Things change in prop trading — rules, payouts, promos, all of it.

For the absolute latest, check TradeDay´s website or their faq page.

The Basic Position Limit Structure

TradeDay's position limits are defined by number of contracts per instrument, not by dollar value or buying power.

The Rule:You can hold either standard contracts OR micro contracts on any single instrument at once—but you're limited to specific maximums based on your account size.

Position Limits by Account Size

Account Size	Maximum Standard Contracts	Maximum Micro Contracts	Per Instrument
$50K Account	2 contracts	10 micros	Yes
$100K Account	4 contracts	20 micros	Yes
$150K Account	6 contracts	30 micros	Yes

Critical Detail: These limits apply per instrument. If you're trading ES (E-mini S&P 500), you can hold up to 2 standard contracts on a $50K account. If you're also trading NQ (E-mini Nasdaq), you can hold up to 2 additional NQ contracts simultaneously—they're separate instruments with separate limits.

But if you try to hold 3 ES contracts at once, you've violated the rule even if you're also holding 0 NQ contracts.

What "Per Instrument" Actually Means

Each futures contract is its own instrument with independent position limits:

Examples of Separate Instruments:

ES (E-mini S&P 500) = separate limit
NQ (E-mini Nasdaq) = separate limit
YM (E-mini Dow) = separate limit
RTY (E-mini Russell 2000) = separate limit
CL (Crude Oil) = separate limit
GC (Gold) = separate limit

You can max out your position limit on ES while simultaneously maxing out your limit on NQ—that's allowed. What's not allowed is exceeding the limit on any single instrument.

Standard Contracts vs Micro Contracts: The Critical Difference

Understanding the distinction between standard and micro contracts is essential for staying within limits.

Standard Contracts (Minis)

Examples:

ES (E-mini S&P 500): $50 per point
NQ (E-mini Nasdaq): $20 per point
YM (E-mini Dow): $5 per point
CL (Crude Oil): $1,000 per point ($10 per tick)

These are the regular-sized futures contracts most traders use. One ES contract moving 1 point = $50 gain or loss.

Position Limits:

$50K account: Maximum 2 standard contracts per instrument
$100K account: Maximum 4 standard contracts per instrument
$150K account: Maximum 6 standard contracts per instrument

Micro Contracts

Examples:

MES (Micro E-mini S&P): $5 per point (1/10th of ES)
MNQ (Micro E-mini Nasdaq): $2 per point (1/10th of NQ)
MYM (Micro E-mini Dow): $0.50 per point (1/10th of YM)
MCL (Micro Crude Oil): $100 per point (1/10th of CL)

Micros are 1/10th the size of standard contracts. One MES contract moving 1 point = $5 gain or loss.

Position Limits:

$50K account: Maximum 10 micro contracts per instrument
$100K account: Maximum 20 micro contracts per instrument
$150K account: Maximum 30 micro contracts per instrument

The Equivalency Confusion

Here's where traders get into trouble: 10 micros ≈ 1 standard in dollar value, but TradeDay doesn't care about equivalency for position limits.

Example:

1 ES contract = $50/point
10 MES contracts = $50/point (combined)
These have the same dollar exposure

But TradeDay's limits treat them as completely separate counts:

You can trade 2 ES contracts (standard limit for $50K account)
OR you can trade 10 MES contracts (micro limit for $50K account)
But you CANNOT trade 1 ES + 10 MES simultaneously on same account

Why? Because if you could combine them, you'd effectively be trading 3 ES worth of exposure (1 ES + 10 MES = 2 ES equivalent), which exceeds the 2-contract standard limit.

You Cannot Mix Standard and Micro Contracts on the Same Instrument

This is the rule that catches most traders: if you're trading ES, you can hold either standard ES contracts OR micro MES contracts—never both at the same time.

Why This Rule Exists

If TradeDay allowed mixing, traders could exploit it:

Max out 2 ES contracts (standard limit)
Also hold 10 MES contracts (micro limit)
Total exposure: 3 ES equivalent (2 ES + 10 MES)
This exceeds the intended 2-contract limit for the account size

By separating the limits and prohibiting mixing, TradeDay ensures you can't backdoor your way into oversized positions.

What Happens If You Mix Them

If you open 1 ES position and then try to open 5 MES positions while ES is still open:

Your MES order gets rejected
Platform shows error: "Position limit would be exceeded"
If you somehow bypass the check (rare), account terminates for rule violation

I learned this the hard way. I was long 1 ES, saw another setup on MES (thinking it was a different instrument), tried to enter 5 MES—order rejected. Took me 20 minutes to figure out why. ES and MES are the same underlying (S&P 500), so you can't mix them.

Instrument Pairs You Cannot Mix

Major Pairs That Share Position Limits:

ES + MES (both S&P 500)
NQ + MNQ (both Nasdaq)
YM + MYM (both Dow)
RTY + M2K (both Russell 2000)
CL + MCL (both Crude Oil)
GC + MGC (both Gold)

If you're trading the standard version, you cannot simultaneously trade the micro version of the same underlying.

Scaling Into Positions: How to Stay Within Limits

If you scale into trades (adding to positions as they move in your favor), you need to track your total contract count carefully.

Legal Scaling Example ($50K Account)

Scenario: Trading MES with 10-micro limit

Trade Execution:

Entry: Buy 3 MES at 4,820
Add: Buy 3 MES at 4,825 (now holding 6 total)
Add: Buy 3 MES at 4,830 (now holding 9 total)
Max position: 9 MES (within 10-micro limit) ✓

Exit:

Sell 9 MES at 4,842
Total gain: 9 contracts × 22 points × $5/point = $990

This is compliant. Never exceeded 10 micros.

Violation Example ($50K Account)

Scenario: Trading MES with 10-micro limit

Trade Execution:

Entry: Buy 5 MES at 4,820
Add: Buy 3 MES at 4,825 (now holding 8 total)
Add: Buy 2 MES at 4,830 (now holding 10 total) ✓
Add: Buy 2 MES at 4,835 (now holding 12 total) ✗

Violation occurred the moment you entered 12th and beyond.

Even if you immediately realized the mistake and closed 2 contracts within 10 seconds, you still violated the limit. TradeDay's system logs that you held 12 contracts for those 10 seconds, which triggers termination during review even if the violation was unintentional.

Prevent Scaling Violations

Strategy 1: Know Your Max Count

$50K account? Your max is 10 micros per instrument
Write it on sticky note on your monitor
Before adding to position, count current contracts held

Strategy 2: Use Platform Position Displays

Most platforms show "Current Position: X contracts" in real-time
Check this before every add

Strategy 3: Leave Buffer Room

If limit is 10, don't scale beyond 8 contracts
Gives you margin for error

I now trade with self-imposed limit of 8 MES on my $50K account (vs the 10-micro official limit). This 2-contract buffer has saved me from accidental violations multiple times when I misclicked or didn't realize I'd already added to a position.

What Happens If You Violate Position Limits

Violating position limits has immediate consequences:

During Evaluation

Real-Time Detection:

TradeDay's system monitors position sizes continuously
Exceeding limit triggers instant violation flag
Account may terminate immediately (if automated) or during end-of-day review

Evaluation Termination:

All progress lost
No refunds issued
Must purchase reset to try again

My violation terminated my account 3 hours after it occurred (during end-of-day review). I didn't realize I'd violated until the termination email arrived explaining what happened.

During Funded Status

Same consequences as evaluation:

Funded account terminates immediately
All undrawn profits lost
Cannot request final payout
No resets available for funded accounts (must restart with new evaluation)

Position limit violations don't get warnings or second chances. They're considered serious rule breaks because they indicate the trader either doesn't understand limits or is intentionally trying to circumvent them.

Why These Limits Exist (And Why They Won't Change)

TradeDay's position limits serve multiple purposes:

1. Risk Management for the Firm

Smaller position sizes = lower potential losses if trader blows up account. If you could trade 10 ES contracts on a $50K account, you'd have $500/point exposure. One 20-point adverse move = $10,000 loss = 20% account drawdown from single position.

Limiting you to 2 ES contracts caps single-position risk at $100/point. Same 20-point move = $2,000 loss = 4% account drawdown. Much more manageable.

2. Preventing Over-Leveraged Trading

New traders often size positions based on "how much can I make" rather than "how much can I lose." Position limits force conservative sizing that prevents account-destroying leverage.

3. Encouraging Proper Risk Management

By capping position sizes, TradeDay encourages traders to focus on entry quality, trade management, and risk/reward optimization—not on position sizing as the primary profit driver.

4. Maintaining Evaluation Integrity

If position limits didn't exist, traders could pass evaluations through lucky over-leveraged trades rather than consistent skill. The limits ensure passing requires genuine trading competence.

Strategic Position Sizing Within Limits

How to maximize profit potential without violating limits:

Strategy 1: Trade Multiple Instruments Simultaneously

Each instrument has its own position limit. You can max out positions on several instruments at once:

Example ($50K Account):

2 ES contracts (at limit)
2 NQ contracts (at limit)
2 CL contracts (at limit)
Total: 6 positions across 3 instruments

All compliant. You're not exceeding any per-instrument limit.

My Approach:I trade both ES and NQ during my session. When I see setups, I might have 1 ES long and 1 NQ short simultaneously. This diversifies my exposure and uses more of my available position capacity.

Strategy 2: Use Micros for Fine-Tuned Sizing

Micro contracts give you more granular position sizing flexibility:

Comparison (Risk $500 per trade):

Using Standard Contracts:

1 ES = $50/point risk
10-point stop = $500 risk per contract
Can only use 1-2 contracts (limited granularity)

Using Micros:

1 MES = $5/point risk
10-point stop = $50 risk per contract
Can use 1-10 contracts (much more granular)

With micros, you can risk exactly $500 by trading 10 MES with 10-point stops. With standard ES, you're forced into $500 (1 contract) or $1,000 (2 contracts)—no middle ground.

Strategy 3: Scale Accounts Instead of Positions

Instead of trying to maximize position size on one account, pass multiple evaluations and run multiple funded accounts:

Example:

Account 1 ($50K): 2 ES positions
Account 2 ($50K): 2 ES positions
Account 3 ($50K): 2 ES positions
Total: 6 ES positions across three accounts

Check the multiple accounts policy for restrictions on coordination.

This scales your overall exposure without violating per-account limits.

Position Limits and Different Trading Styles

How limits affect various approaches:

Scalpers (High Frequency, Small Moves)

Position limits don't constrain scalpers much. Scalping profits come from frequency and quick moves, not from position size:

Typical Scalper Profile:

Entry: 1-2 MES contracts
Target: 2-5 points
Hold time: 30 seconds to 3 minutes
Position limit rarely tested

I scalp with 1-2 MES contracts. Never come close to 10-micro limit. For scalping, position size matters less than execution speed and entry quality.

Day Traders (Swing Positions)

Day traders benefit from larger positions on good setups:

Typical Day Trader Profile:

Entry: 3-5 MES contracts (or 1 ES)
Target: 15-30 points
Hold time: 30 minutes to 4 hours
Position limit occasionally tested when scaling

Day traders might max out limits on strong setups but typically trade comfortably within them.

Position Traders (Multi-Day Holds)

Position traders face most constraints from TradeDay's limits:

Typical Position Trader Profile:

Entry: Want 5+ standard contracts for meaningful size
Target: 50-100+ points over days/weeks
Hold time: 1-5 days
Position limits feel restrictive

TradeDay's evaluation model isn't designed for position trading. The daily price swings on large positions create drawdown limit risks that conflict with holding through temporary adverse moves.

If you're a position trader, TradeDay might not be the best fit. Consider firms that allow larger positions or don't track intraday drawdowns.

Common Mistakes Traders Make With Position Limits

Mistake 1: Assuming Dollar-Based Limits

Traders think "I have $50K buying power, so I can risk X dollars per trade." Wrong. Limits are contract counts, not dollar amounts.

You can't trade 3 ES contracts on a $50K account even if you're only risking $300 total. The limit is 2 contracts, period.

Mistake 2: Not Tracking Micro Contract Counts During Scaling

When you scale into MES positions, it's easy to lose count:

Started with 3
Added 2 (now at 5)
Added 3 (now at 8)
Market pulls back, you add 3 more ("averaging down")
Now at 11 = violation

I've done this. Your platform might not stop you from entering the 11th contract if the check has slight latency. By the time you realize, you've already violated.

Mistake 3: Thinking "Just for a Second" Doesn't Count

Some traders assume brief violations don't matter:

Enter 12 MES contracts
Realize mistake immediately
Close 2 contracts within 10 seconds
Think they're safe because violation was brief

Not true. TradeDay's logging system records that you held 12 contracts for those 10 seconds. Violation occurred. Account terminates during review.

Mistake 4: Not Understanding ES vs MES Are Same Underlying

Traders see ES and MES as different instruments because they trade on different tickers. They're not—they're different contract sizes on the same underlying (S&P 500).

You cannot hold 1 ES and 5 MES simultaneously. Choose one or the other.

FAQ

Can I change between trading standard contracts and micros during my evaluation?

Yes. You just can't hold both at the same time on the same instrument. You could trade ES Monday, close all ES positions, then trade MES Tuesday. Just never have both ES and MES positions open simultaneously.

Do position limits apply to paper trading or only funded accounts?

They apply during evaluation and funded status. If you're practicing on a demo account outside of TradeDay, their limits don't apply—but get used to trading within them since you'll need to respect them during your actual evaluation.

What if I exceed limits due to a platform glitch or execution error?

Contact TradeDay support immediately with documentation. If you can prove the violation was platform-side (not trader error), they may review your case. But if it's trader error (misclick, miscalculation), the violation stands.

Can I request higher position limits once I'm funded?

Not directly. Position limits are tied to account size. The way to increase limits is through account scaling programs where you prove consistent profitability and upgrade to larger account sizes ($100K or $150K), which have higher limits.

Do position limits apply across multiple instruments I'm trading simultaneously?

No. Each instrument has its own independent limit. You can max out ES contracts (2 on $50K account) while simultaneously maxing out NQ contracts (also 2) and CL contracts (also 2). You're not violating any per-instrument limit, so you're compliant.

What if I'm holding a position and someone else on my team accidentally enters a trade on the same account?

You're responsible for all activity on your account regardless of who executed it. If your account ends up exceeding position limits because of coordinated or shared access, it's still a violation. TradeDay doesn't allow shared account access anyway—that would violate their terms.

Can I use different position sizes during evaluation vs funded status?

Position limits don't change between evaluation and funded status. A $50K account can hold 2 standard contracts or 10 micros per instrument in both phases. However, during funded status you might trade smaller size to stay well within drawdown limits.

Do position limits apply to options on futures?

TradeDay doesn't currently support options on futures trading during evaluations. You can only trade futures contracts themselves. Position limits apply to futures contracts only since that's all you can trade.

If I'm trading correlated instruments like ES and NQ, do their limits combine?

No. ES and NQ are separate instruments with separate position limits. You can hold 2 ES and 2 NQ simultaneously on a $50K account. They don't combine despite being correlated (both equity indices).

What's the penalty for violating position limits in funded status vs evaluation?

Same penalty: account termination. No warnings, no resets. Funded accounts that violate position limits terminate permanently. You'd need to purchase a completely new evaluation and start from scratch.

Final Thoughts: Respect the Limits, Focus on Quality

Position limits feel restrictive when you're used to trading your personal account where you can size positions however you want. But these limits aren't arbitrary—they're designed to keep you alive during evaluation and funded trading.

I've completed four evaluations at TradeDay. Never once did I feel like position limits prevented me from being profitable. What made me profitable was:

Good entry quality
Proper stop placement
Patient trade management
Consistency

Position size amplifies results (good or bad), but it doesn't create edge. If you can't pass evaluation within TradeDay's limits, you probably wouldn't maintain profitability with unlimited size either—you'd just blow up faster.

Focus on trading well within the limits. If you genuinely need more size, pass multiple evaluations and run multiple funded accounts.