How does the position limit work?
Each simulation has a set position limit that teams must remain within throughout the simulation. This means that you can’t invest more than the set position limit in any one stock at one time. For example, if you have a position limit of $25,000, this means that you can’t invest any more than $25,000 in any one stock at one time. If you purchase $10,000 worth of stock ABC for example, then you can only invest another $15,000 because of your position limit. If you original investment of $10,000 goes up in value to $11,000, then you will only be able to invest another $14,000 in that stock. However, if you invest your full $25,000 in a stock and the value goes up, we will not sell off your shares to keep within the position limit. You originally invested within the position limit and the value went up, which makes it ok but you can’t invest any more into that stock.
