No. Your existing positions will not be affected. Your original leverage and margin stay exactly as they were.
- Existing positions (opened before the period): These are not affected. Your original leverage and margin requirements remain unchanged.
- New positions (opened during the period): Dynamic leverage will apply only to newly opened trades during this time.
- Leverage restoration: Once the event ends (for example, 5 minutes after a news release), leverage will automatically return to your original account setting (e.g., from 1:200 back to 1:1000).
Importantly, this restoration does not increase your risk, but helps improve your account’s safety by releasing margin and increasing your margin level.
Example: Margin impact during and after a news event (NFP)
Scenario: A client opens 1 lot of gold (XAUUSD) 5 minutes before the NFP release (assumed price: $3,000)
Original conditions:
- Leverage: 1000:1
- Margin required: 3,000 × 100 ÷ 1000 = $300
- During the news period:
- Leverage: Reduced to 200:1
- Margin required: 3,000 × 100 ÷ 200 = $1,500
During the news period (leverage 1:200):
- Account equity: $2,000
- Margin used: $1,500
- Free margin: 2,000 − 1,500 = $500
- Margin level: (2,000 ÷ 1,500) × 100% = 133%
With a lower margin level, even small market movements may increase liquidation risk if they fall below required thresholds (20%).
After the news period (leverage restored to 1:1000):
- Account equity: $2,000
- Margin used: Reduced to $300
- Free margin: 2,000 − 300 = $1,700
- Margin level: (2,000 ÷ 300) × 100% = 666%
Margin is released, and your account returns to a safer position with a higher buffer.