IC Markets
Your leverage was 1:500 last week and now the platform shows 1:200, or your margin requirements have doubled. Brokers adjust leverage for defined reasons, most of them risk controls, and they are usually disclosed in advance in the account terms or an email. This guide covers the triggers and how a change affects positions you already hold.
The common triggers
| Trigger | Typical change | Duration |
|---|---|---|
| Major scheduled news (FOMC, NFP, CPI, elections) | Leverage halved or more on affected instruments | Hours around the event |
| Weekend | Reduced leverage from Friday afternoon | Until Monday open |
| Account equity crossing a tier | Step down, e.g. 1:500 to 1:200 | Permanent while equity stays in the tier |
| Jurisdiction or regulatory change | Cap applied, e.g. to 1:30 | Permanent |
| Broker risk-management decision | Reduced on a specific volatile instrument | Until the broker reverts it |
News and weekend reductions
The most common change. Around an event that can gap the market, the broker raises margin requirements on the instruments likely to move, which is the same as cutting leverage. This protects both you and the broker from a position that a fast move could take deeply negative. It is temporary; leverage returns to normal after the event or the Monday open. Check the broker's announcements page during big event weeks.
Equity tiers
Many brokers reduce maximum leverage as your account grows, on the reasoning that a larger position needs a bigger buffer. If your equity crosses from USD 19,000 to USD 21,000 and the tier boundary is USD 20,000, your maximum leverage may drop from 1:500 to 1:200 automatically. The leverage guide covers these tiers.
What happens to open trades
A leverage reduction usually applies to new positions, not the margin already locked on your existing trades, so open positions are not force-closed by the change alone. But be careful: if you close and reopen a position after the change, it will use the new, higher margin, which can reduce your free margin sharply. Some brokers do recalculate margin on open positions for a regulatory change; check the specific announcement.
Deniz found his available leverage cut from 1:400 to 1:100 on a Friday afternoon and worried his open trades would be closed. The reduction applied only to new positions over the weekend; his existing trades kept their original margin. He avoided opening anything new until Monday, when leverage returned to 1:400. Deniz now expects the Friday reduction and plans around it.
What to check when your leverage changes
- The broker's announcements or notifications for a stated reason and duration.
- Whether the change is temporary (news, weekend) or permanent (equity tier, regulation).
- Your current free margin, since a higher requirement on any new position eats into it.
- Whether the change recalculates margin on your open positions; most do not, but some regulatory changes do.
- The instrument specification, since a reduction often applies only to specific volatile symbols.
If none of these explains it, and the change hit only your account rather than a client segment, put a written query to the broker and keep the reply.
A leverage change that the broker announces in advance and applies for a defined reason is normal risk management. A change with no notice, no reason, and applied only to your account rather than a client segment, is worth a written query and, for a regulated broker, escalation to its regulator if unexplained.
Most leverage changes are the broker widening its safety margin: around news, over weekends, or as your account grows. They are announced and temporary, except the equity-tier and regulatory ones. The practical response is to not open fresh positions right before a scheduled reduction, and to keep enough free margin that a doubling of requirements does not threaten your open trades.
Frequently asked
Why did my forex broker reduce my leverage?
The common reasons are a temporary risk control around major scheduled news or over a weekend, your account equity crossing into a lower-leverage tier, a regulatory change in your jurisdiction, or a broker decision to tighten risk on a specific volatile instrument.
Does a leverage change close my open trades?
Usually not. A reduction typically applies to new positions, and the margin already locked on your open trades is unchanged. The exception is some regulatory changes where the broker recalculates margin on open positions; check the specific announcement.
Why is my leverage cut every weekend?
Weekend gaps are a major risk. The broker raises margin requirements from Friday afternoon on instruments that can gap on the Sunday or Monday open, then restores normal leverage at the open. This is disclosed in the account terms.
My leverage dropped after my account grew. Why?
Many brokers use equity tiers where maximum leverage falls as the account gets larger, on the basis that a bigger position needs a bigger buffer. Crossing a tier boundary steps your leverage down automatically.
Can I keep my old leverage?
For a temporary news or weekend reduction, it returns automatically. For an equity-tier or regulatory reduction, generally no. You can sometimes request a specific leverage setting from support, up to the maximum your tier and jurisdiction allow.