To protect clients from extreme market volatility during major events, MH Markets implements the Leverage Adjustment Policy. This policy temporarily adjusts margin requirements during high-risk periods and market volatility.
Leverage Adjustment Overview
| Scenario | Effective Period | Leverage Adjustment |
|---|---|---|
| Daily Trading Breaks | Mon–Thu: 1 hour before market close until 1 hour after reopening. | Leverage will be temporarily reduced to 50% of the account's current leverage |
| Weekend Market Closures | Friday: 30 minutes before market close until 30 minutes after reopening on Monday. | Maximum leverage will be capped at 1:500. |
| Event-Based Margining (EBM) | From 15 minutes before until 10 minutes after a scheduled high-impact news release |
Market opening and closing times are based on the XAUUSD trading session. The Event-Based Margining (EBM) period may be extended at the discretion of MH Markets, based on prevailing market conditions.
Conditions for Adjustment
To help protect your accounts from additional margin pressure during the leverage adjustment periods, the above leverage adjustments will not be applied if either of the following conditions is met:
- The account’s margin level is greater than 0% and below 200%;
- The account’s applied leverage is 1:500 or lower.
The adjustment will only be applied if your margin level is 200% or higher, or 0% (meaning no open positions or fully hedged positions), and your account leverage is higher than 1:500.
Example: If your account uses fixed leverage at 1:500 and your account equity level is up to 300%, your leverage will be temporarily reduced to 1:200 during the EBM session. Once the EBM session ends, your leverage will automatically revert to 1:500.
Which Accounts and Positions Are Affected?
This policy applies to both Floating Leverage and Fixed Leverage accounts. It affects both newly opened orders and existing open positions.
Once leverage is reduced, the margin required to open new positions and maintain existing ones will increase accordingly. Higher margin requirements apply during leverage adjustment periods. If you try to place an order and see an unexpected "Not Enough Money" error in MetaTrader for a position you could previously open, it may be because your account leverage has been temporarily reduced. If your account lacks sufficient free margin, new orders may be rejected.
We have reviewed, with examples, how decreased leverage increases your Margin requirement in the "Calculating Margin using Fixed and Floating Leverage" article. Or learn more about Margin & Leverage.
During a leverage adjustment period, we recommend that you:
- Ensure your account maintains sufficient free margin;
- Monitor your open positions and margin level closely;
- Manage your trading risk in line with prevailing market conditions.