When trading on the Exness platform, you may notice that the platform may increase margin requirements during major news releases. This is for some important reasons to ensure the safety of traders' funds and reduce risks when market volatility increases. This article will delve into why margin requirements are raised during news releases and explain the logic behind it.
The release of major news, such as economic data releases, central bank resolutions, etc., often triggers severe market volatility and price gaps. These sudden price fluctuations may cause significant fluctuations in traders' trades, and even result in losses. In order to prevent this situation, the Exness platform has taken measures to increase margin requirements to ensure that traders have sufficient funds to cover potential losses.
When the market is volatile, using high leverage may increase risk. Although high leverage can amplify profits, it can also amplify losses. When the market fluctuates rapidly, traders may not be able to take timely action, leading to increased losses. By increasing margin requirements during news releases, the Exness platform reduces the risk of traders using high leverage, thereby protecting the safety of their funds.
The purpose of increasing margin requirements is to limit traders from using excessive leverage in high-risk situations. Setting the leverage limit for gold and silver pairs during the news release period at 1:200 is a compromise between balancing the risk of high leverage trading and the safety of trader funds. This enables traders to manage risks more cautiously when market volatility increases, avoiding significant losses due to rapid fluctuations.
In summary, the reason why the Exness platform increased margin requirements during the press release period is to protect the safety of traders' funds and reduce the risks brought by market volatility. This is a reasonable and responsible measure aimed at enabling traders to cope with market fluctuations more calmly during high-risk times, ensuring the stability and success of trading. Whether you are a beginner or an experienced trader, it is important to understand platform regulations and risk management strategies before trading in order to better respond to various market situations.
