Why does PU Prime temporarily reduce leverage?

PU Prime temporarily reduces leverage to help manage the risk of sharp price movements around news releases and market openings or closings. This adjustment, called dynamic leverage, applies to newly opened positions in affected products during designated periods. Lower leverage means you need more margin to open a position of the same lot size.
 

When will I need more margin to open a trade?

You will need more margin to open a new trade when dynamic leverage is active on the product you want to trade. Dynamic leverage lowers the leverage available for new positions during specified periods around major economic announcements and market openings or closings. Lower leverage means a higher margin requirement for the same lot size. The three sections below explain when you will need more margin, when you will not, and when your order may still be rejected.
 

• When will I need more margin:

  Dynamic leverage increases the margin required for a new position only when all of the following apply:
   

  - You open a new position during an adjustment period. Adjustments begin before expected volatility and apply to new positions opened during the scheduled period. 
  
  - You trade a product affected by the adjustment. Affected products and leverage limits vary by event, so check the leverage adjustment schedule to confirm. 
  
  - Your applicable leverage is above the temporary limit. The temporary limit replaces your leverage when margin is calculated for the new position.  
   

• When you may not be able to open the trade:

  Even if you know the required margin, your order may be rejected if your free margin is not enough: 
  
  - Your free margin is insufficient. If your leverage is reduced, you need enough free margin to open the trade, or your order may be rejected.

   

What is the maximum leverage during a dynamic leverage period?

The following temporary maximum leverage limits apply to new positions opened in affected products during a dynamic leverage period: 

Why is my displayed account leverage different from my trading leverage?

Dynamic leverage temporarily changes the leverage used to calculate margin for new positions in affected products, while your displayed account leverage remains unchanged.

• Displayed leverage: Your account continues to show its original leverage setting.

• Effective leverage: Affected products use the temporary leverage limit to calculate margin for new positions during the adjustment period.
  
   

What should I check before opening a new position?

Before opening a new position, review the latest PU Prime Client Notices to understand any temporary leverage adjustments that may affect your intended trade.

• Affected products: Whether the product you intend to trade is included.

• Maximum leverage: The temporary leverage limit for that product.

• Adjustment period: The start and end dates and times, using the server time zone stated in the notice.

• Additional conditions: Any event-specific requirements or exceptions.

Ensure you have sufficient free margin to open your intended position under the temporary leverage limit, particularly when trading larger lot sizes. All times use server time:

• GMT+2 during non-daylight saving time.

• GMT+3 during daylight saving time.
  
   

Where can I find the leverage adjustment schedule?

To check when Dynamic Leverage adjustments apply, refer to the PU Prime Client Notices page, where the latest leverage adjustment schedules and relevant details are published.

• Visit the PU Prime Client Notices page for the applicable events, affected products, leverage limits, and adjustment periods.

• The schedule for the upcoming week is published every Friday.

• Schedule dates and times follow the MetaTrader 4 and MetaTrader 5 server time specified in the notice, which may differ from your local time. Check the notice’s stated time zone and convert both the start and end times to your local time to confirm when the adjustment applies.

   

When does my normal trading leverage resume?

Your normal applicable leverage resumes automatically when the dynamic leverage period ends. No action or request is required.

Example: Gold leverage adjustment

Suppose your normal GOLD leverage is 1:1000, and the temporary maximum leverage is 1:100:

• During the adjustment: New Gold positions use 1:100 leverage, although your account still displays 1:1000.

• After the adjustment: 1:1000 leverage applies again automatically.