When trading during news releases, margin requirements may change. If you open a new position or increase your total net position within 15 minutes before or 10 minutes after a news release, your margin will be recalculated based on a 1:200 leverage ratio. This applies to all instruments listed in the relevant notification in your trading platform, including positions opened before the news event.
However, if your account leverage is 1:200 or lower, your margin requirements will be calculated based on your account’s set leverage, regardless of when the position was opened.
Calculation Examples:
1. 20 minutes before the publication of important macroeconomic news, position #1 (0.1 lot USD/JPY) is opened on an account with a leverage ratio of 1:2000. The margin required for this position is $5.
6 minutes later, position #2 is opened with a similar volume of 0.1 lot. Due to the increased volatility during the news period, the margin required for position #2 is $50.
Thus, the total margin for both positions is $5 (for position #1) + $50 (for position #2) = $55.
10 minutes after the publication of the news, the margin requirements for position #2 are recalculated, reducing the margin to $5. Consequently, the total margin for both positions is now $5 (for position #1) + $5 (for position #2) = $10.
2. 20 minutes before the publication of important macroeconomic news, position #1 (a buy position) and position #2 (a sell position) are opened on an account with a leverage ratio of 1:2000. Both positions have a volume of 0.1 lot (USD/JPY). The total margin required for these positions combined is $5.
6 minutes later, position #1 is closed. The margin requirements are then recalculated, resulting in an increase of the margin for position #2 to $50 due to the heightened volatility during the news period.
10 minutes after the publication of the news, the margin requirements are recalculated again, reducing the margin for position #2 to $5.
3. 20 minutes before the release of significant macroeconomic news, three buy and three sell positions on the USD/JPY pair are opened on an account with 1:2000 leverage, each with a volume of 0.1 lot. The total margin required is 15 USD. 6 minutes later, during the news period, one of the sell positions will be closed, triggering a recalculation of the margin requirements for the remaining positions. Following this recalculation, the total margin will increase to 150 USD, reflecting the use of 1:200 leverage.
10 minutes after the release of the macroeconomic news, the margin requirements for all USD/JPY positions will be recalculated again, reducing the total margin back to 15 USD.
Therefore, if unhedged positions are opened 15 minutes before, during, or within 10 minutes after the publication of news, or if positions are opened or closed as part of a hedging strategy during this period, the margin requirements for all positions – including those opened earlier – will be recalculated.
4. 20 minutes before the release of significant macroeconomic news, three buy and two sell positions on the USD/JPY instrument are opened on an account with 1:2000 leverage, each with a volume of 0.1 lot. The total margin required is 15 USD. 6 minutes later, one additional sell position is opened. However, this action does not trigger a recalculation of the margin requirements, and the total margin after opening the new position remains 15 USD.
10 minutes after the release of the macroeconomic news, the margin requirements for all USD/JPY positions are not recalculated, and the total margin remains unchanged at 15 USD.
Therefore, when hedging positions 15 minutes before or 10 minutes after the publication of macroeconomic news, the margin requirements remain unchanged.
