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  7. HIGH MARGIN REQUIREMENTS (HMR)

HIGH MARGIN REQUIREMENTS (HMR)

A higher margin requirement is set during some key events and specific time periods, which impact the general volatility of the market.

The HMR period can be extended based on risk management decisions depending on each news’ impact.

Higher margin requirements are applied to new orders or orders reopened as a result of other closed positions during:

  • News releases
  • Weekends and public holidays
  • Rollovers

News releases

When important economic news is published that involves a trading instrument, orders opened 10 minutes before and 5 minutes after the news release will have higher margin requirements applied.This mitigates a trader's exposure to the risk of price instability during economic events. 5 minutes after the news release, higher margin requirements are lifted, and the margin is recalculated based on the equity of the trading account and its set leverage. You can find out when major economic news is due for release on our Economic calendar.

Rollovers, Weekends and public holidays

Some trading instruments are subject to trading breaks during the weekends and public holidays. Also, all instruments have a rollover time. Higher margin requirements are applied to these instruments during this period.

HMR leverage

Find HMR leverage of all impacted symbols in the table below.

Symbols Maximum leverage HMR leverage
News releases Rollovers Weekends and public holidays
Forex majors,
Forex minors
3000 200 3000 500
XAUUSD,
XAGUSD,
XAUUAD,
XAUEUR,
XAUGBP,
XAGEUR
3000 200 1000 500
US30, US500
US100
500 200 200 200
DE40,UE50,
UK100, FR40
200 200 100 100
ES35, JP225 200 200 100 100
HK50 200 200 100 100
AU200 200 200 100 100
CHA50,
SGD20
200 200 100 100
BRENT, WTI,
XNGUSD
200 100 200 200
Shares 20 5 5 5

HMR period

Find HMR period for all events, which impact the general volatility in the list below.

News releases

  • Forex majors, Forex minors: 10 min before and 5 min after
  • XAUUSD, XAGUSD, XAUUAD, XAUEUR, XAUGBP, XAGEUR: 10 min before and 5 min after
  • Indices
    • US30, US100, US500: 10 min before and 5 min after
  • BRENT, WTI, XNGUSD: 10 min before and 5 min after
  • Shares: 1440 min* before and 5 min after

Rollovers

  • XAUUSD, XAGUSD, XAUUAD, XAUEUR, XAUGBP, XAGEUR: 10 min before and 10 min after
  • Indices
    • US30, US100, US500: 60 min before and 30 min after
    • DE40, EU50, UK100, FR40: 60 min before and 480 min after
    • ES35, JP225: 60 min before and 60 min after
    • HK5: 60 min before and 180 min after
    • AU200: 60 min before and 120 min after
    • CHA50, SGD20: 60 min before and 240 min after
    • Shares: 60 min before and 5 min after

Weekends and public holidays

  • Forex majors, Forex minors: 180 min before and 60 min after
  • XAUUSD, XAGUSD, XAUUAD, XAUEUR, XAUGBP, XAGEUR: 10 min before and 10 min after
  • Indices
    • US30, US100, US500: 60 min before and 30 min after
    • DE40, EU50, UK100, FR40: 60 min before and 480 min after
    • ES35, JP225: 60 min before and 60 min after
    • HK5: 60 min before and 180 min after
    • AU200: 60 min before and 120 min after
    • CHA50, SGD20: 60 min before and 240 min after
  • Shares: 60 min before and 5 min after

*High margin requirements are applied to Shares starting from 24 hours prior to the release of earnings and dividends reports.

Examples

Example 1

HMR during news release

  • News release of Personal Consumption Expenditure Core (YoY) are planned at 12:30
Client opens a trade on USDJPY 1 lot (where maximum leverage is 3000) at 12:27
According to HMR rules between 12:25 and 12:35 (HMR period), any new orders opened on Forex majors will have a margin held at an HMR leverage of 1:200.

Hence required margin for the trade USDJPY 1 lot is:
Required margin (HMR) = 1*100000USD/200 = 500 USD instead of 33.33 USD (if there are no any news releases and other HMR cases).

Example 2

HMR during rollover

  • Rollover time 00:00
Client opens a trade on XAUUSD 0.5 lot (where maximum leverage is 3000) at 23:56
According to HMR rules between 23:50 and 00:10 (HMR period), any new orders opened on XAUUSD will have a margin held at an HMR leverage of 1:1000.

Hence required margin for the trade XAUUSD 0.5 lot is:
XAUUSD contract size = 100
XAUUSD price = 1933.50

Required margin (HMR) = 0.5*100*1933.5/1000 = 96.68 USD instead of 32.23 USD.

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