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Does EXNESS reduce leverage during news
Many traders are curious: Does EXNESS reduce leverage during news events?The short answer is yes, but only in specific conditions. Like most regulated brokers, EXNESS has margin requirements and leverage restrictions when markets are highly volatile, especially during major economic news releases.
In this article, we’ll explain in detail how leverage works during news, when restrictions apply, and what traders can do to manage their risks.
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How Leverage Works in EXNESS
EXNESS offers highly flexible leverage, ranging from 1:1 to unlimited leverage (depending on account type and trading conditions). Normally, traders can set their preferred leverage in the Personal Area.
However, during certain high-risk periods, leverage may be temporarily reduced to protect traders from sudden market swings.
Does EXNESS Reduce Leverage During News?
Yes. EXNESS applies temporary leverage restrictions during:
✅ High-impact economic events (e.g., Non-Farm Payrolls, Fed Interest Rate decisions, ECB announcements).
✅ Weekends or holidays when liquidity is low.
✅ Times of extreme volatility (unexpected global news, geopolitical events).
This policy is designed to reduce trader losses from slippage and price spikes.
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How Leverage Reductions Work
EXNESS may reduce leverage to a maximum of 1:200 or 1:500 before major news events. The restrictions usually apply:
15 minutes before the news release
30 minutes after the news release
Example:If you normally trade with 1:2000 leverage, your leverage may be capped at 1:200 around NFP. After the time window ends, your leverage automatically returns to normal.
Example of Trading During News with Reduced Leverage
Let’s say you have $100 in your EXNESS account:
Normal leverage (1:2000) → You could open a position worth $200,000.
News-time leverage restriction (1:200) → You can only open a position worth $20,000.
This limitation prevents traders from overexposing their accounts during volatile moves, such as EUR/USD moving 100 pips in seconds.
Pros and Cons of Leverage Reduction During News
✅ Advantages
Protects traders from large losses.
Reduces risk of margin calls during extreme volatility.
Helps maintain broker stability and liquidity.
❌ Disadvantages
Limits profit potential for high-risk news traders.
Prevents scalpers from fully using unlimited leverage.
May affect short-term strategies like hedging or grid trading.
Tips for Trading News on EXNESS
Check the Economic Calendar – Always know when high-impact events are coming.
Plan Position Sizes Carefully – Expect temporary leverage reduction.
Use Stop Loss Orders – To protect against unexpected slippage.
Avoid Overtrading – News trading is risky; not every event is worth trading.
Consider Lower Leverage – Even if unlimited is available, using 1:100–1:200 can be safer during news.
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Conclusion
So, does EXNESS reduce leverage during news?Yes — EXNESS may temporarily limit leverage around major economic events to protect traders and ensure market stability. While this may reduce profit potential, it also prevents catastrophic losses caused by sudden price swings.
For most traders, this is a positive safety feature rather than a disadvantage.
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FAQ – EXNESS and Leverage During News
1. Does EXNESS reduce leverage before news?Yes, leverage is often capped (e.g., 1:200) before major events like NFP.
2. How long does the restriction last?Usually 15 minutes before and 30 minutes after the news release.
3. Can I still trade during news on EXNESS?Yes, but with reduced leverage and higher margin requirements.
4. Does this affect all accounts?Yes, leverage restrictions apply across account types during news.
5. Can I avoid leverage reduction?No, it’s automatic. The best strategy is to plan your trades ahead.
6. Is EXNESS safe for news trading?Yes. In fact, the leverage policy makes it safer compared to brokers with no restrictions.
See more:
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