Market volatility and margin go hand in hand. When volatility rises, brokers often increase margin requirements to protect traders from sudden swings.
For example, during major news events like NFP or rate decisions, margin requirements may double temporarily. This protects both traders and brokers from rapid losses.
Understanding this relationship helps you plan ahead. Avoid over-leveraged trades before major events, and always maintain free margin to handle volatility. The key is preparation — margin is flexible, but your discipline must be stronger.
For example, during major news events like NFP or rate decisions, margin requirements may double temporarily. This protects both traders and brokers from rapid losses.
Understanding this relationship helps you plan ahead. Avoid over-leveraged trades before major events, and always maintain free margin to handle volatility. The key is preparation — margin is flexible, but your discipline must be stronger.