AMarkets, a global leader in online trading, has announced significant updates to its Regulations on Trading Operations for MT4 and MT5 accounts, set to take effect on September 1, 2024. These updates specifically address changes to paragraph 2.30 of the regulations, focusing on leverage adjustments and margin requirements around the release of significant macroeconomic news.

Under the new regulations, AMarkets may limit the maximum leverage to 1:200 for all positions opened within 15 minutes before and 10 minutes after the release of critical macroeconomic data, provided that the current account leverage exceeds 1:200. This change is designed to protect traders from the heightened risks associated with market volatility during key economic announcements.

Example Scenarios:

Scenario 1: Imagine a trader opens a 0.1 lot position in USD/JPY with a leverage of 1:2000, 20 minutes before the release of significant economic data. The initial margin requirement for this position is $5. Six minutes later, a second position of the same size is opened. Due to increased market volatility, the margin requirement for the second position rises to $50. After the news is released, the margin requirements are recalculated, reducing the total margin for both positions to $10.

Scenario 2: In another scenario, a trader opens two opposing positions (buy and sell) of 0.1 lot each in USD/JPY with a leverage of 1:2000, 20 minutes before a major economic announcement. The total margin required is $5. Six minutes later, the first position is closed, leading to an increase in the margin requirement for the remaining position to $50 due to increased volatility. Following the news release, the margin is recalculated and reduced to $5.

These examples illustrate how the updated regulations will impact margin requirements during periods of high market volatility, ensuring that traders are adequately protected against potential risks.

The updates to paragraph 2.30 also grant AMarkets the authority to limit maximum leverage and increase margin requirements before the release of any news that could significantly affect the prices of financial instruments. This proactive approach aims to mitigate the risks associated with sudden market movements, providing a more secure trading environment for clients.

Traders using MT4 and MT5 accounts are encouraged to familiarize themselves with these changes and adjust their trading strategies accordingly. By understanding the new leverage limitations and margin requirements, traders can better manage their risk during volatile market conditions.

AMarkets remains committed to providing a safe and reliable trading environment, and these updates are part of its ongoing efforts to enhance the trading experience for its clients. For more detailed information, traders are advised to review the updated regulations available on the AMarkets website.