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:
When important economic news is published that involves a trading instrument, orders opened 5 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.
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.
Find HMR leverage of all impacted symbols in the table below.
|Symbols||Maximum leverage||HMR leverage|
|News releases||Rollovers||Weekends and public holidays|
Find HMR period for all events, which impact the general volatility in the list below.
*High margin requirements are applied to Shares starting from 24 hours prior to the release of earnings and dividends reports.
HMR during news release
Hence required margin for the trade USDJPY 1 lot is:
Required margin (HMR) = 1*100000USD/500 = 200 USD instead of 33.33 USD (if there are no any news releases and other HMR cases).
HMR during rollover
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.