Company logo

Understanding Dynamic Margin Requirement


*
Trading is risky. Your capital is at risk.

The Dynamic Margin Requirement is a mechanism implemented to manage market volatility during key events and specific periods, such as economic announcements, weekends, and public holidays. Dynamic Margin Requirement ensures that higher margin requirements are applied to mitigate clients' exposure and maintain market stability.

Dynamic Margin Requirement Timing and Asset Classes

Dynamic Margin Requirement applies to all asset classes, including Forex, metals, indices, commodities, crypto, and shares. The duration of the Dynamic Margin Requirement period depends on the event type. For instance:

  • News Releases: 10 minutes before and 2 minutes after.
  • Weekends/Public Holidays: 60 minutes before session closure, resetting upon market open​

Key Scenarios for Dynamic Margin Requirement Application

News Releases

During significant economic announcements, such as Non-Farm Payrolls (NFP), Dynamic Margin Requirement is applied to orders placed shortly before and after the release. After the event, the margin is recalculated based on the account's equity and leverage.

Example:

  • An NFP release is scheduled for 13:30 UTC.
  • A trade of 2 lots on EURUSD with maximum leverage of 3000 is opened at 13:21 UTC.
  • Dynamic Margin Requirement applies leverage of 1:200 during the event window (13:20–13:32 UTC).
  • Margin required increases from 66.67 EUR to 1,000 EUR
  • Weekends and Public Holidays

Ahead of weekends and market holidays, Dynamic Margin Requirement applies higher margin requirements to mitigate risks from extended market closures.

Example:

  • A trade of 10 lots on UK100 is opened at 23:30 server time Friday.
  • With Dynamic Margin Requirement leverage of 1:200 during the pre-closure window (22:55–23:55), the margin required increases from 166 GBP to 415 GBP​

Have more questions?

Call us at: +44 2045 771951

Engage with our chatbot

Company Logo
Social Media Icon 1Social Media Icon 2Social Media Icon 3Social Media Icon 4Social Media Icon 5

Explore

About

Support

Alpari, the trading name of Parlance Trading Ltd, Bonovo Road – Fomboni, Island of Mohéli – Comoros Union, is incorporated under registered number HY00423015 and licensed by the Mwali International Services Authority, Island of Mohéli as an International Brokerage and Clearing Company under number T2023236.

Risk Disclosure: Before trading, you should ensure that you've undergone sufficient preparation and fully understand the risks involved in margin trading.

Alpari does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Syria, Sudan and Cuba.

© 1998-2025 Alpari

Privacy PolicyClient AgreementRisk DisclosureCookie PolicyTerms of Business

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.