Leverage & Margin
What is Leverage in trading?
Leverage is a tool provided by brokers that allows you to control a large position in the market with a significantly smaller amount of your own capital. It is expressed as a ratio (e.g., 1:100) and magnifies both your potential profits and potential losses. Essentially, it's a loan from your broker to increase your trading buying power.
Example:
What is Margin in trading?
Margin is the amount of capital you need to deposit with your broker to open and maintain a leveraged trading position. Think of it as a security deposit or a good-faith collateral that ensures you can cover potential losses. It is not a transaction fee but rather a portion of your account equity that is "set aside" and locked while your trade is open.
Example:
Fixed Leverage
Clients can select a fixed leverage ratio of up to 1:500 for their account directly via the CRM portal, providing consistent trading conditions.
Floating Leverage
Our floating leverage model automatically adjusts ratios based on real-time equity. For full details on the tiered structure, please refer to our official announcement below:
How to Calculate Margin Requirements
Your margin requirement is determined by three key factors:
Frequently Asked Questions
Will the new EBM policy affect my existing positions?
No. The Event-Based Margining (EBM) policy only applies to new positions opened during the specified event window (15 minutes before to 5 minutes after a high-impact news release). Your existing open positions will continue to operate under the margin requirements that were in effect when they were opened.
How can I find out when a high-impact news event is scheduled?
We recommend that all traders monitor Major financial news websites or the economic calendar on MH Markets website, which lists the key events in the global markets that are likely to cause volatility.
What happens if I don't have enough margin during an EBM event?
If you attempt to open a new position during an EBM event and your account does not have sufficient free margin to meet the higher temporary margin requirement, your order will be rejected by our trading system. For existing positions, if volatility causes your margin level to fall critically low, you may receive a margin call and be at risk of having positions automatically liquidated.
What is the difference between fixed and floating leverage?
The main difference is that fixed leverage stays the same no matter how much your account balance changes, giving you predictable trading conditions. Floating leverage, however, automatically adjusts based on your account's size; as your real-time equity grows, your leverage decreases to help manage risk, and if your real-time equity falls, your leverage may increase.
