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Dynamic Leverage and High Margin Requirements (HMR) Terms & Conditions
Last updated: January 2026
1. Overview
OTG GROUP Ltd ("OTG GROUP ", "the Company") offers Dynamic Leverage on its trading accounts. Dynamic Leverage is a tiered margin system that automatically adjusts the leverage applied to a Client's positions based on the total trading volume held in a specific instrument or group of instruments. This document outlines the terms and conditions governing Dynamic Leverage and High Margin Requirements (HMR) applied to trading accounts with OTG GROUP.
2. How Dynamic Leverage Works
Under the Dynamic Leverage model, margin requirements are calculated on a per-instrument basis, using a tiered structure. As the Client's position size (measured in lots) increases, the applicable leverage decreases and margin requirements increase accordingly. For example, for Forex Major pairs: - Tier 1 (0-5 lots): Up to 1:2000 leverage - Tier 2 (5-20 lots): Up to 1:1000 leverage - Tier 3 (20-50 lots): Up to 1:500 leverage - Tier 4 (50-100 lots): Up to 1:200 leverage - Tier 5 (100+ lots): Up to 1:100 leverage The exact tiers and leverage ratios vary by instrument category and may be updated by the Company from time to time. The current Dynamic Leverage schedule is available on the Company's website.
3. Instrument Categories
Dynamic Leverage tiers are applied across the following instrument categories: a) Forex Major Pairs (e.g., EUR/USD, GBP/USD, USD/JPY) b) Forex Minor Pairs (e.g., EUR/GBP, AUD/NZD) c) Forex Exotic Pairs (e.g., USD/ZAR, EUR/TRY) d) Precious Metals (Gold, Silver) e) Energies (Crude Oil, Natural Gas) f) Stock Indices (e.g., US500, UK100, GER40) g) Cryptocurrencies (e.g., BTC/USD, ETH/USD) h) Shares/Equities CFDs Each category has its own tier structure with different leverage levels. The Client is advised to review the specific leverage tiers for each instrument category before trading.
4. High Margin Requirements (HMR)
OTG GROUP may apply High Margin Requirements (HMR) under certain circumstances to protect both the Client and the Company from excessive risk. HMR events include: a) Major Economic Events: Margin requirements may be increased prior to, during, and after major scheduled economic releases (e.g., Non-Farm Payrolls, central bank interest rate decisions, GDP releases). b) Weekend and Holiday HMR: Margin requirements may be increased for positions held over weekends and public holidays, when markets are closed and liquidity is reduced. c) Market Volatility: During periods of abnormal market volatility, the Company may increase margin requirements across all or specific instruments. d) Specific Instruments: Certain instruments may be subject to permanently higher margin requirements due to their inherent volatility or lower liquidity.
5. Margin Call and Stop-Out
The Client is responsible for maintaining sufficient margin in their trading account at all times. The Company applies the following margin management procedures: a) Margin Call: When the Client's margin level falls to or below 80%, the Client will receive a margin call notification. This is a warning that the Client needs to deposit additional funds or close some positions to restore their margin level. b) Stop-Out: When the Client's margin level falls to or below 30%, the Company will automatically close the Client's open positions, starting with the position with the largest unrealised loss. This process continues until the margin level recovers above the stop-out level. The margin call and stop-out levels may vary by account type. The Client should consult the specific terms for their account type.
6. Company's Rights
OTG GROUP reserves the right to: a) Modify the Dynamic Leverage tiers, ratios, and instrument categories at any time, with or without prior notice. b) Apply special margin requirements to individual Client accounts based on trading activity, risk assessment, or regulatory requirements. c) Reduce leverage on specific instruments or account types during periods of high market volatility or low liquidity. d) Change the margin call and stop-out levels for any account type. e) Implement temporary HMR periods without prior notice in response to extraordinary market events. The Company will endeavour to provide reasonable notice of any permanent changes to Dynamic Leverage or HMR terms, where practicable.
7. Client Responsibilities
The Client acknowledges and agrees that: a) They are responsible for monitoring their account's margin level at all times. b) Dynamic Leverage can result in significant changes to margin requirements as position sizes increase. c) HMR events may cause sudden increases in margin requirements, potentially triggering margin calls or stop-out events. d) The Client should maintain adequate free margin in their account to absorb fluctuations in margin requirements. e) The Company's provision of margin call notifications does not guarantee that the Client will receive such notifications in a timely manner. For the most up-to-date information on Dynamic Leverage tiers and HMR events, please visit our website or contact our Client Support team at support@otggroup.net