Hello everyone. When I hear on the news that a big typhoon or strong winds are coming, I take a look around my house. Let’s start with that story today.

When you hear that a strong wind is coming, you first look through the window. We check one by one to see if it is closed properly, if the lock is in good condition, and if there is no wind coming in through the gap. It's difficult to do anything when the wind starts blowing, so check before coming. If the wind passes without incident after inspection, I feel embarrassed because I feel like I made a fuss, but I feel much more at ease. Even if I don't use it, it's not a waste of time to prepare it.

I think this kind of preparation is a way to reduce worry. My worries grow without me knowing, but after checking, I feel like I've done enough and my anxiety subsides. On the other hand, if you are caught in the wind without any preparation, you will be startled by even the slightest sound. Ultimately, preparation creates peace of mind.

In FX trading, the story that leverage can be lowered before and after major schedules such as CPI or FOMC seems like such a 'big wish'. It's puzzling when you first hear that margin conditions can change during times when prices can fluctuate significantly. So today Why does such a story come about, how is it written in the terms and conditions, and how does the number change when it is lowered?I would like to check it in advance. I have something to tell you first. I couldn't find any official notice that XM actually lowered leverage during CPI or FOMC. So, this article is not about ‘it will definitely go down’, but rather ‘it can go down, so let’s calculate it.’

01What are CPI and FOMC?

CPI is the consumer price index. Since it is one of the representative indicators that shows how much a country's prices have risen, the market can move significantly depending on the results of the announcement. FOMC is the U.S. Federal Open Market Committee, a meeting that sets base interest rates. It is known that the market reacts sensitively to the results of this meeting and subsequent remarks. Both schedules can affect gold, dollar, and major currency pairs, so these are schedules that people who trade FX pay close attention to.

It is convenient to convert the presentation time into Korean time and memorize it. Below are the generally known times, and the actual schedule varies by month, so please check the economic calendar with the date.

Please also remember that Korean time varies by one hour depending on whether or not there is daylight saving time. If you are confused about calculating time Why Market Closed appears In this article, I have summarized the server time and Korean time conversion.

02What are the terms and conditions written?

I found two related phrases in the XM Terms and Conditions (English, saved on October 2, 2026) that I saved. One is an explanation of leverage. There is a statement that reads to the effect that XM may raise or lower the leverage ratio at any time, at its own discretion, without prior notice, and may also do so in relation to external events such as government announcements or news. It was also written that if the leverage is lowered, the margin level, margin call level, and stop-out level may be affected, resulting in a margin call or liquidation of the position.

The other is the text regarding margin requirements (59.5). The idea is to temporarily require higher margins for new orders around Friday's market close, other market closures, major news releases (e.g. non-farm payrolls), or unusual market conditions. In this case, it is said that it may also affect orders that are already open. There is language in 59.4 that says margin requirements can change at any time and vary from instrument to instrument.

To summarize, according to the terms and conditions, leverage or margin may change. the room is openis a story. That doesn't mean it changes every time, and I haven't checked how it actually applies to any schedule. In XM promotional materials and some reviews, it is introduced that maximum leverage is maintained even during major indicators. Rather than a contradiction with the terms and conditions, it is safer to understand this as meaning that policies may vary depending on the time and situation. Please check the date directly on the XM official page and notice to see which words apply now.

● If you are unfamiliar with the terms and conditions or are confused about how they apply to your position, you can calculate them together. If you have any questions, please feel free to contact us and we will think about it together. Focus on trading.

03Why might there be such an adjustment?

I can't say for sure why, but I'll give you a general understanding. It is known that when a big indicator is announced, the price moves significantly in a short period of time, the bid price becomes empty or the spread widens. In these situations, a common explanation is that if leverage is too high, losses can exceed the margin with just a momentary price change, so brokers can adjust terms to reduce risk. Third-party news reports that in the past, there was news that XM limited leverage before the 2017 French presidential election, but please note that this has not been confirmed by me in an official document. The time period when the spread widens Time zone when spread widens I have organized it separately in the article.

04Let me follow along with the numbers.

What you're probably most curious about is how the numbers change when leverage is lowered. The following are all assumptions for illustrative purposes only. Let's say you own 0.5 lots of EUR/USD and the price is 1.1000.

At 100x leverage, the margin is $550, but when it goes down to 50x, it becomes $1,100, at 30x it becomes about $1,833, and at 20x it becomes $2,750. The margin is divided by the nominal amount by the leverage, so if the leverage is halved, the margin doubles. How to calculate Margin calculation I explained it in the article.

The key point of this example is that 400%, which seemed like a generous amount, can go down to 80% just by changing leverage. It is more risky if your net worth is smaller. If the net asset is $1,200, it will be about 218% at 100 times, about 109% at 50 times, about 65% at 30 times, and about 44% at 20 times, and 44% is lower than the 50% margin call standard defined in the terms and conditions. The fact that the margin level can change suddenly the moment leverage is lowered like this is XM Stopout LevelIt is easier to understand if you look at it together with the standards explained in .

05In what order do things happen?

The flow when leverage is lowered is as follows.

There may or may not be notice or notification. It is said that the terms and conditions can be adjusted without prior notice. The margin is then recalculated and increased, and the margin level is lowered. Falling below the threshold may result in restrictions on new orders, margin calls, or even liquidation. This doesn't mean that you have a high chance of going through all the steps yourself, but it does mean that if you know the structure, you can take your time in advance.

06How to prepare in advance

I recommend doing this inspection on days when you have a big schedule. First, check today's announcement schedule and Korean time in the economic calendar. Second, check the margin level of the position you currently hold and calculate the margin level assuming that the leverage is reduced by half. Third, if the number is too close to the margin call standard, consider reducing the lot or liquidating the position as an option. Fourth, check your email and member page for notices. Fifth, it is also a good idea not to rush immediately after the indicator is announced, as spreads can be wide and prices can move quickly.

What's important here is Maintaining a comfortable margin level on a daily basisThis is it. Although I cannot control variables such as leverage changes or price fluctuations, I can determine my usual margin. Hedge positions with similar margin structures can be calculated in the same way. If you buy and sell at the same time, will the margin be doubled? I summarized it in the article. If you are new to leverage leverage meaning If you are wondering how much leverage to use, please refer to the article on how much leverage to use.

07If you find it's already low, try this

If you open the trading screen and the leverage appears to have changed or the margin level is lower than usual, it is easy to panic. In that case, I recommend that you set an order. First, take a breath and check your current margin level and free margin in numbers. Next, check your members page and email to see if there have been any announcements, and finally calculate how close your position is to the criteria. Just doing these three things will make the situation much clearer.

After that, you can think about your options. There are ways to lower the margin burden by reducing lots, ways to increase net assets by making deposits, and ways to liquidate some positions. Which one is right depends on each individual's situation, so I can't give you the right answer. However, if you rush, it is easy to make a calculation mistake, so I recommend writing down the numbers on paper and checking them from time to time. Also, keep in mind that prices can move quickly immediately after an announcement, so your order may be filled at a different price than you want.

08It's easier to set your own standards.

To avoid being flustered by a big schedule, it is helpful to set your own leisure standards. For example, set a personal standard in advance, such as, ‘My margin level should not go below this level on a regular basis.’ This number varies from person to person and is an area where there is no right answer. In the example we saw earlier, when the leverage is halved, the margin level also drops to 50%, so there is also a way to use the margin to withstand that level of change as a standard. For example, if the usual margin level was 400%, even if the leverage is halved, 200% will remain, and even if it is reduced once more, about 120% will remain.

Of course, this is just an example to help you calculate, and you need to make your own judgment as to which standard is appropriate. Just setting standards and sticking to them will greatly reduce your anxiety when it comes to big schedules. And once you set that standard, it's not over. It's a good idea to check it again every time your account size and trading style changes.

09Checklist of things to check

10Things we haven't confirmed yet

There are parts in this article that I could not confirm. It has not been confirmed whether XM actually lowers leverage during CPI or FOMC, and if so, which stocks it applies to and for how long, and how prior notification is provided. The terms and conditions and third party examples are for reference only. Please check the currently applied leverage policy and margin call/stopout standards along with the date on the XM official page and member page. The indicator release time may also change from month to month.

11Frequently Asked Questions

12Organizing

There is a clause in the XM terms and conditions that allows leverage and margin requirements to be adjusted depending on the situation. Although I have not confirmed how it is actually applied to large schedules such as CPI and FOMC, you can calculate in advance that if leverage is reduced by half, the margin will be doubled and the margin level will be reduced to half.

Just like checking your windows before a big breeze, checking your margin levels once before a big event is enough. Thank you for reading until the end.

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