What is Dynamic Leverage and how does it work?
Dynamic Leverage is a feature implemented by PU Prime during periods of high market volatility, such as major economic announcements, market openings, or market closures. During these periods, leverage on certain instruments may be temporarily adjusted to help protect against extreme price gaps and market instability.
When Dynamic Leverage is applied, the maximum leverage available for newly opened positions may be temporarily reduced according to the product being traded.
The maximum leverage for affected instruments may be adjusted as follows:
- Forex & Gold: up to 1:200
- Silver: up to 1:50
- Indices CFDs: up to 1:50
- Oil: up to 1:20
- Commodities (including XPTUSD and XPDUSD): up to 1:5
Please note that these adjustments apply based on your current account configuration and the specific product traded:
- Forex & Gold: If your account is already configured with leverage equal to or lower than the specified maximum (e.g., set to 1:100), your trading leverage will remain unaffected. However, Forex pairs with pre-existing lower fixed leverage will continue to follow their specific margin requirements.
- Other Products: Regardless of your account’s leverage setting, all trading for Silver, Indices CFDs, Oil, and Commodities (including XPTUSD and XPDUSD) will follow the new dynamic leverage during designated volatility periods.
Once the designated event period ends, leverage for these positions will revert to the account’s original leverage setting.
Temporary leverage adjustments will apply during the following market windows:
Note: During temporary leverage reduction periods, margin estimates in the PU Prime App are for reference only and may differ from actual requirements. Please ensure sufficient account funds to meet real-time margin demands.
Dynamic Leverage Example:
Consider the following scenario during a CPI News Release (scheduled for 15:30). The affected period for reduced leverage is 15:15 to 15:35.
As leverage adjustments may increase the margin required to maintain open positions, clients are strongly encouraged to monitor their account equity and margin levels closely, particularly during periods of heightened market activity.
A weekly schedule of affected news events will be distributed every Friday via our official website announcements and email. Clients are advised to monitor these updates and plan their trading activities accordingly.
If you need additional help, please contact PU Prime Support via live chat or email us at info@puprime.com by using your registered email address.
