Max Nominal Exposure
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Limits the total position size based on price and quantity, regardless of stop distance.
Nominal exposure is how much of the market you are actually trading. A trade can have a very tight stop and still be large if the price or number of contracts is high.
Large nominal positions interact with more market liquidity. When price moves fast or liquidity is thin, those orders cannot always be filled at the expected price. This creates slippage, which means getting filled worse than planned.
By limiting nominal exposure, trades stay small enough to be filled more easily, slippage is reduced, and real losses stay closer to the planned stop loss.