Has your broker changed margin requirements before a big event?

FTC Community TeamStaff109 views

Brokers can raise margin requirements or lower maximum leverage before events they expect to be volatile, such as central bank decisions, elections or weekends with major news. Positions that were comfortable on Friday can then need more margin on Monday.

Has your broker changed margin requirements before a big event? — leverage and margin diagram
Leverage: a small margin controlling a larger position

If this has happened to you, please share:

  1. The broker and the regulator of the entity you trade with
  2. The event, and how much notice the broker gave
  3. Whether the change applied to open positions or only new ones
  4. How you found out: email, platform message or a margin call
Has your broker changed margin requirements before a big event? — moving average crossover diagram
A fast moving average crossing a slower one

Only describe what happened on your own account, and don't post account numbers or personal details. Background on how margin works is in leverage and margin explained, and the leverage limits guide lists the maximums set by regulators.

Background: Leverage and margin explained: margin calls, stop-outs and how losses grow

Leverage lets you control a large position with a small deposit. It magnifies losses exactly as much as gains, and it is behind most blown trading accounts.

What does 30:1 leverage mean?

You can control a position 30 times larger than your margin deposit. $1,000 of margin opens a $30,000 position, and gains and losses are calculated on the full $30,000.

What is a margin call?

A warning from your broker that losses have reduced your margin level to a set threshold. If it keeps falling, the broker starts closing positions automatically, which is called a stop-out.

Read the full guide

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  1. FTC Community Team1 mo ago

    Some background on why this happens and what to look for, to help members compare experiences.

    Brokers set margin requirements within the limits regulators allow. Ahead of events they expect to cause gaps, such as central bank decisions, elections or referendums, some raise the margin needed on affected pairs, typically announcing it by email or on their website a few days before. Whether the change applies to positions already open is set out in the broker's terms.

    How to protect yourself:

    • Keep a margin buffer. If a doubling of margin would put your account near its stop-out level, you're too close already.
    • Read broker notices before big events, and check whether your broker's terms allow changes to open positions.
    • Know the regulatory caps. In the UK and EU, retail leverage on major pairs is capped at 30:1 (leverage limits); brokers can ask for more margin, but not less.

    Members, how much notice did your broker give, and did it apply to open positions?

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