Leverage & Margin

Guide to our Leverage and Margin Rules

Understand MH Markets' margin
requirements and leverage policies

MH Markets Leverage
and Margin Rates

Leverage and margin levels differ by instrument, trade volume, and
trading account (Standard, ECN, and Prime). For full product details,
please refer to the requirements below.

Leverage & Margin Calculation

What is Leverage in trading?

Leverage is a tool provided by brokers that allows you to control a large position in the market with a significantly smaller amount of your own capital. It is expressed as a ratio (e.g., 1:100) and magnifies both your potential profits and potential losses. Essentially, it's a loan from your broker to increase your trading buying power.

Example:

With a $1,000 balance and 1:100 leverage, you control a $100,000 position.
A 1% price move equals a $1,000 profit or loss.

Note: Leverage can magnify both profits and losses. If the market moves against your position, you could lose more than your initial investment.

How Leverage Affects Margin and Position Size

What is Margin in trading?

Margin is the amount of capital you need to deposit with your broker to open and maintain a leveraged trading position. Think of it as a security deposit or a good-faith collateral that ensures you can cover potential losses. It is not a transaction fee but rather a portion of your account equity that is "set aside" and locked while your trade is open.

Example:

To open a €100,000 EUR/USD trade with 1% margin, you need €1,000 as collateral. This €1,000 is your margin requirement.

If your trade moves against you and losses approach this €1,000, you may receive a margin call or be stopped out

Note: A lower margin requirement means higher leverage, which can magnify both potential profits and potential losses. Always manage your risk carefully when trading on margin.

Fixed Leverage vs. Floating Leverage at MH Markets

At MH Markets, we employ two distinct leverage models depending on the instrument you are
trading. Understanding the difference is key to effective risk management.

Fixed Leverage

Clients can select a fixed leverage ratio of up to 1:500 for their account directly via the CRM portal, providing consistent trading conditions.

Floating Leverage

Our floating leverage model automatically adjusts ratios based on real-time equity. For full details on the tiered structure, please refer to our official announcement below:

Important Update: Auto Leverage Adjustment for MT4, MT5, MT4 Live 01

Important Update: Auto Leverage Adjustment for Cent Accounts (MT4 Live 01 and MT5)

When Does This Apply?

These changes are activated during two types of events:

Economic News Releases

For 15 minutes before and up to 5 minutes after a high-impact news announcement.

Market Closures

This includes weekends, public holidays, and daily trading breaks. The window is 3 hours before closure until 1 hour after reopening.

Increased Margin Requirements &
Event-Based Margining (EBM)

To protect our clients from the extreme volatility that can accompany major economic events, MH Markets implements an Event-Based Margining (EBM) policy. This policy temporarily adjusts margin requirements for affected instruments around high-impact news releases.

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High-impact events refer to economic events classified as “High” in importance and marked in red in the Economic Calendar. These events are subject to the EBM clause under the Leverage and Margin Policy Adjustment.

How Does This Impact You?

During these volatile periods, the leverage
for new positions in affected instruments
(FX, XAUUSD, XPTUSD) will be temporarily reduced.

Your existing high leverage (e.g., 1:2000) may be capped at a maximum of 1:200 for new trades.

As a result, you will need more margin to open these new positions.

If your account does not have sufficient free margin, your orders may be rejected, or existing positions may be at risk of being stopped out.

Notes:

These changes only apply to new orders placed during the event window. Your existing open positions are not affected.

MH Markets may adjust margins in real-time during extreme volatility without prior notice and may extend the EBM period if necessary.

If your account does not have sufficient free margin, your orders may be rejected, or existing positions may be at risk of being stopped out.

We strongly encourage all clients to:

Monitor your margin levels frequently, especially around news events and market closures.

Avoid over-leveraging during these times.

Consider adjusting trade sizes or adding funds to maintain a healthy margin buffer.

Policy Overview

Aspect	Adjusted Leverage During Market Closures	Event-Based Margining (EBM) During News Releases
When	Mon–Thu: 1 hr before close → 1 hr after reopen Fri: 2 hrs before close → 1 hr after reopen Includes weekends, holidays, trading breaks	15 minutes before until 5 minutes after a high-impact news event.
Instruments	FX, Gold (XAUUSD), Platinum (XPTUSD)	Gold (XAUUSD)
Change	New orders are capped at 1:200	New orders are capped at 1:200
Existing Positions	Unaffected	Unaffected
Leverage Rule	The lowest available leverage (MT account or DM tier) will be applied.	The lowest available leverage (MT account or DM tier) will be applied.
Reversion	Margin returns to standard after market reopens (unless extended by RC)	Margin returns to standard after news event (unless extended by RC)

How to Calculate Margin Requirements

Your margin requirement is determined by three key factors:

The specific leverage set for your
account and the instrument.

The size of your
position.

The base currency of your
trading account.

Frequently Asked Questions

Will the new EBM policy affect my existing positions?

No. The Event-Based Margining (EBM) policy only applies to new positions opened during the specified event window (15 minutes before to 5 minutes after a high-impact news release). Your existing open positions will continue to operate under the margin requirements that were in effect when they were opened.

How can I find out when a high-impact news event is scheduled?

We recommend that all traders monitor Major financial news websites or the economic calendar on MH Markets website, which lists the key events in the global markets that are likely to cause volatility.

What happens if I don't have enough margin during an EBM event?

If you attempt to open a new position during an EBM event and your account does not have sufficient free margin to meet the higher temporary margin requirement, your order will be rejected by our trading system. For existing positions, if volatility causes your margin level to fall critically low, you may receive a margin call and be at risk of having positions automatically liquidated.

What is the difference between fixed and floating leverage?

The main difference is that fixed leverage stays the same no matter how much your account balance changes, giving you predictable trading conditions. Floating leverage, however, automatically adjusts based on your account's size; as your balance grows, your leverage decreases to help manage risk, and if your balance falls, your leverage may increase.

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Leverage & Margin

Understand MH Markets' margin
requirements and leverage policies