In CFD trading on the MT5 platform, high market volatility (High Volatility) often results in increased investment risk. To maintain portfolio stability and comply with risk management measures, the broker implements a Higher Margin Requirement (HMR) policy, which involves increasing margin levels. This results in a temporary reduction of leverage during critical periods.
In cases of economic news releases, market volatility, or high-frequency trading activity, Liquidity Providers will adjust leverage according to the details below:
The Company reserves the right to change leverage in clients’ trading accounts (both increases and decreases) without prior notice, subject to the conditions specified on the website www.iux.com.
Any automatic leverage change, whether in accordance with Company rules or initiated by the client through the Personal Area, will result in a recalculation of margin requirements for all open positions.
The Company reserves the right to take the following actions:
1. To provide maximum leverage of up to 1:3000 under normal market conditions, depending on the client’s account type, trading volume, and financial instruments;
2. To implement the Higher Margin Requirement Policy (hereinafter referred to as the “HMR Policy”), whereby the maximum leverage permitted by the Company shall not exceed 1:400 during specified periods (hereinafter referred to as the “HMR Period”), as follows:
In the case of High-Impact News announcements: The Company will enforce the HMR Policy from fifteen (15) minutes prior to the scheduled release of major news until five (5) minutes after the announcement (“News Period”);
In the case of Market Close: The Company will enforce the HMR Policy from two (2) hours prior to market close during weekends or public holidays and one (1) hour after the market reopens. Market opening and closing times may vary depending on each financial instrument (“Market Close Period”);
In the case of low liquidity / Rollover Period: The Company will enforce the HMR Policy between 21:45 – 23:45 (UTC+0) (“Rollover Period”);
Scope of application: The HMR Policy applies to new trading orders only;
Application to existing positions: The Company reserves the right to apply the HMR Policy to both new orders and existing positions for certain financial instruments, as specified, during the Market Close Period and the Rollover Period;
During the News Period and Market Close Period, the HMR Policy will limit the maximum leverage for new positions to no more than 1:400 for the following financial instruments. The Company reserves the right, at its sole discretion, to extend the application of the HMR Policy to both new and existing positions during the Market Close Period:
Major currency pairs (CFD);
Minor currency pairs (CFD);
Precious metals (CFD), including XAUUSD (CFD);
During the News Period, the HMR Policy will limit the maximum leverage for new positions to 1:200 for precious metals (CFD), including XAGUSD (CFD), XAUEUR (CFD), XAUGBP (CFD), and XAGEUR (CFD). However, the maximum leverage will be adjusted to 1:400 for both new and existing positions during the Market Close Period and the Rollover Period;
During the HMR Period, the HMR Policy will limit the maximum leverage for new positions to 1:200 for the following instruments:
Major Indices (CFD), including S&P500 (CFD), US30 (CFD), USTEC (CFD), DE30 (CFD), UK100 (CFD);
During the HMR Period, the HMR Policy will limit the maximum leverage for new positions to 1:100 for the following instruments:
Minor Indices (CFD), including AUS200 (CFD), FR40 (CFD), HK50 (CFD), STOXX50 (CFD);
Energy (CFD), including USOIL (CFD), UKOIL (CFD);
During the News Period, the application of the HMR Policy for new positions in Indices (CFD) (DXY) will vary depending on the client’s account equity. However, the maximum leverage will be adjusted to 1:400 for both new and existing positions during the Market Close Period and the Rollover Period;
During the News Period, the HMR Policy will limit the maximum leverage for new positions to 1:100 for Cryptocurrency Majors (CFD), including BTCUSD (CFD) and ETHUSD (CFD). However, the maximum leverage will be adjusted to 1:400 for both new and existing positions during the Market Close Period and the Rollover Period;
During the News Period, the HMR Policy will limit the maximum leverage for new positions to 1:50 for the following instruments, and the maximum leverage will be adjusted to 1:400 for both new and existing positions during the Market Close Period and the Rollover Period:
Cryptocurrency Alternatives (CFD), including ADAUSD (CFD), ATMUSD (CFD), AVAUSD (CFD), BATUSD (CFD), BCHUSD (CFD), BNBUSD (CFD), DOTUSD (CFD), LTCUSD (CFD), SOLUSD (CFD), TRXUSD (CFD), UNIUSD (CFD), XMRUSD (CFD), XTZUSD (CFD);
During the HMR Period, the HMR Policy will limit the maximum leverage for new positions to 1:20 for all Stocks (CFD);
During the HMR Period, the HMR Policy will limit the maximum leverage for new positions to 1:5 for all Thematic Indices (CFD), except for the following instruments: GERMANY40_15X (CFD), CANNABIS_GLB_3X (CFD), OIL_ETF10X (CFD), US500_20X (CFD), BIOTECH_GIANTS WTI_3X (CFD);
During the HMR Period, the HMR Policy will limit the maximum leverage for new positions to 1:2 for the following instruments:
Thematic Indices Minor (CFD), including GERMANY40_15X (CFD), CANNABIS_GLB_3X (CFD), OIL_ETF10X (CFD), US500_20X (CFD), BIOTECH_GIANTS WTI_3X (CFD);
During the Rollover Period, the HMR Policy will limit the maximum leverage for both new and existing positions to no more than 1:1000 for the following financial instruments:
Major currency pairs (CFD);
Minor currency pairs (CFD);
Precious metals (CFD), including XAUUSD (CFD), XAGUSD (CFD), XAUEUR (CFD), XAUGBP (CFD), and XAGEUR (CFD);
During the Pre-Market Break Period, the HMR Policy will be enforced starting one (1) hour prior to the Pre-Market Break Period and will apply to all financial instruments within the Indices (CFD) and Thematic Minor (CFD) categories (collectively referred to as the “Pre-Market Break Period”). The enforcement of the HMR Policy during this period will limit the maximum leverage for new positions as follows:
Indices (CFD) – Major group (Majors): Maximum leverage limited to 1:200;
Indices (CFD) – Minor group (Minors): Maximum leverage limited to 1:100;
Thematic Minor (CFD): Maximum leverage limited to 1:5;
The commencement and duration of the Pre-Market Break Period may vary depending on each financial instrument;
3. To limit the size of leverage offered and/or to increase margin requirements prior to macroeconomic events and/or news that may significantly impact the pricing of financial instruments.
If you have any questions or concerns, please contact us at support@iux.com