Your trade’s effective leverage may have been temporarily reduced under VT Markets’ Dynamic Leverage rules, which apply during selected high-impact news events and market opening or closing periods. Dynamic Leverage temporarily lowers the maximum leverage for affected products, increasing margin requirements to help manage exposure during increased volatility, reduced liquidity, and potential price gaps. Additional conditions may apply during certain Gold market holidays, and affected products, leverage limits, and effective periods may vary by event.
Why does Dynamic Leverage apply?
Dynamic leverage applies to help limit exposure to increased market risk during major economic announcements and market openings or closings.
It temporarily reduces available leverage, so you need more margin to open a trade of the same size.
During these periods, market conditions may include:
- Higher volatility: Prices may change more sharply than usual.
- Lower liquidity: Fewer buyers or sellers may be available.
- Wider spreads: The difference between buying and selling prices may increase.
- Price gaps: Prices may jump from one level to another.
Dynamic leverage schedule times
All Dynamic Leverage schedule times should be checked according to VT Markets server time (GMT+3 during daylight-saving time and GMT+2 during non-daylight-saving time), where applicable to the published schedule.
Period | Applies to |
|---|---|
15 minutes before to 5 minutes after a major news release |
|
3 hours before the weekly market closing (Friday) | Forex, Gold, Silver, Oil, Indices, Commodities |
30 minutes after market reopening (Monday) | Forex, Gold, Silver, Oil, Indices, Commodities |
30 minutes before daily market closing (Monday – Thursday) | Forex, Gold, Silver, Oil, Indices, Commodities |
If the following day is a full-day Gold holiday, 3 hours before the market close | Gold, Silver, Oil, Forex, NAS100, SP500, DJ30, US2000 |
If the previous day was a full-day Gold holiday, 30 minutes after the market opens | Gold, Silver, Oil, Forex, NAS100, SP500, DJ30, US2000 |
Announcements that may trigger Dynamic Leverage include:
- Federal Open Market Committee (FOMC) announcements.
- Consumer Price Index (CPI).
- Gross Domestic Product (GDP).
- Purchasing Managers’ Index (PMI).
- Producer Price Index (PPI).
- Retail Sales.
- Non-Farm Payrolls (NFP).
- Automatic Data Processing (ADP) employment reports.
- Other significant economic data releases.
What are the temporary maximum leverage limits
The current VT Markets Help Centre lists the following temporary maximum leverage limits:
Products | Temporary Maximum Leverage |
Forex | 1:200 |
Gold | 1:100 |
Silver | 1:50 |
Oil | 1:10 |
Indices | 1:100 |
Commodities | 1:5 |