What it Means:
In a nutshell, leverage is the ability to use borrowed money to increase your buying power. In all accounts at TopstepFX, whether it be a Trading Combine or a Funded Account, the cash value is leveraged at a ratio of 100:1. This simply means that for every $1,000 in your trading account, you have $100,000 worth of buying power.
Your starting balance is the cash value of your account when the market opens, not the leveraged amount of equity available. For example, in a $300K trading account, your starting balance is $3,000. As the unrealized equity in your account grows while you’re holding a position, the lot size you’re able to trade begins to increase.
If you show an unrealized profit of $500 in a trade in a $300k account, then your buying power will increase allowing you to add more contracts to the trade. However, the same Weekly Loss Limit will still apply.
If you successfully exit the trade as a winner (let’s say you made $1200), your starting balance will immediately reflect that profit ($4,200), and your leveraged equity will increase to $420k. However, the same starting rules will still apply to the account ($300k).