A maximum leverage figure does not tell you how much margin a particular IC trade will use. IC, formerly IC Markets, publishes dynamic leverage tiers and Higher Margin Requirements (HMR) that can change the margin required for new positions around specific market periods. A trader who reads only the headline “up to 1:5000” could seriously underestimate how position size and timing affect available capital.
This guide explains the Global trading conditions shown on IC's website as checked on 14 October 2026. Specific products, tiers, leverage limits, eligibility and rules vary by legal entity, so the values used here are examples of a documented Global framework—not promises about every customer account or instrument.
Leverage is exposure, not a profit multiplier you control
Leverage allows a trader to obtain a larger market exposure while posting a smaller amount as initial margin. At 1:100 leverage, a simplified USD 10,000 notional position requires around USD 100 of initial margin before other adjustments. That does not reduce the economic risk of holding a USD 10,000 position. Price changes still act on the full notional exposure, not only the margin posted.
When a trader focuses solely on the minimum deposit or maximum leverage, position sizing can become dangerously disconnected from the amount of money they could lose. A stop loss and a fixed risk amount matter more than the largest available headline leverage ratio.
Dynamic leverage: why one position may span several tiers
IC Global describes a tiered margin model. As position size increases, different portions of a position can fall into different leverage bands. It is therefore incorrect to assume that a 70-lot position receives the same leverage rate across its entire notional value simply because its first 25 lots qualify for a high-leverage tier.
| Portion of illustrative USD/CHF position | Published normal maximum leverage in IC's example | Illustrative notional | Margin |
|---|---|---|---|
| First 25 standard lots | 1:5000 | USD 2,500,000 | USD 500 |
| Next 25 lots | 1:3000 | USD 2,500,000 | USD 833.33 |
| Remaining 20 lots | 1:1000 | USD 2,000,000 | USD 2,000 |
| Total 70 lots | Tiered calculation | USD 7,000,000 | USD 3,333.33 |
This example is drawn from the broker's published USD/CHF framework; it is not an appropriate retail-sized trade suggestion. In fact, it demonstrates how large the underlying exposure can become relative to posted margin. Margin requirements can change, and the loss on a position can dwarf the amount initially reserved as collateral.
Higher Margin Requirements around volatile periods
IC's HMR framework describes temporary leverage caps around the end-of-day rollover, major news events and weekend close/reopening. The official page lists indicative periods such as 15 minutes before to one minute after high-impact news, but traders should check the current specifications because implementation and instruments may change. HMR can mean that new positions require materially more margin than the same trade would under ordinary conditions.
For the broker's 70-lot USD/CHF example, its HMR calculation applies 1:500 to the first 25 lots and 1:200 to each of the other two portions, totalling approximately USD 27,500 of initial margin for a new position under those illustrative higher-margin tiers. That is dramatically more than USD 3,333.33 in the normal example. Neither amount says anything about whether the trade will win or lose.
What about positions already open during HMR?
The official Global page makes a distinction that short summaries often miss: its HMR rates are described as applying to new positions, while existing open positions retain the leverage at which they were opened. It also describes recalculation when an HMR period ends under the applicable framework. Readers should not turn a general note into a universal guarantee about every entity or product. Monitor the margin actually shown in your trading terminal and review the current rules before opening or maintaining large exposures.
This distinction matters when planning news trading. A strategy may have enough free margin to hold an existing position yet not enough to open a similarly sized new one during a special margin window. A temporary rejection or unexpected “not enough money” error should prompt a check of margin requirements rather than repeated order submissions.
Equity, free margin and stop-out risk
Account balance is not the same as available margin. Equity changes with unrealised profits and losses. Used margin represents capital reserved against open positions. Free margin is the equity remaining after used margin. Margin level is often expressed as equity divided by used margin, multiplied by 100%, although the exact display and close-out conditions depend on the trading platform and legal entity.
When a leveraged trade moves against the account, equity and free margin can contract rapidly. If conditions deteriorate, the broker's margin call or stop-out mechanisms may restrict new positions or liquidate some exposure under the account terms. Never assume a stop-loss order will always execute at its exact requested level when a market gaps or liquidity disappears.
How spread and execution interact with leverage
IC advertises Raw spreads beginning at 0.0 pips and infrastructure designed for low latency. Actual spreads vary. Around major economic announcements or illiquid sessions, the spread can widen and orders may slip. A fast execution infrastructure is not a guarantee of a specific entry price or a maximum loss. Holding a larger leveraged position magnifies the currency impact of a small adverse move.
For active traders, the right test is not merely whether an account allows scalping or EAs. It is whether the position-size rules, execution assumptions and stop-loss behaviour remain viable under realistic conditions. Compare total trading costs, particularly if an automated strategy places many orders during volatile market periods.
Gold, stock CFDs and other instruments have different tiers
The Global leverage page distinguishes forex majors, exotic currencies, gold, silver, cryptocurrencies and stock CFDs. Some stock CFDs have special margin windows near their market close; metals use different published tiers from forex. Therefore a margin calculator configured for a major currency pair should not be applied blindly to XAUUSD or an index contract.
Avoid copying an online leverage chart into a trading plan without verifying its date and the relevant account. Broker terms may also be constrained by the trader's country or regulatory classification.
A safer position-sizing process
- Identify the instrument's contract size and its value per pip, point or tick.
- Decide the cash amount you can afford to lose on this trade before looking at the maximum available leverage.
- Determine the stop-loss distance based on a reasoned invalidation point, while allowing for potential slippage.
- Calculate an appropriate position size from risk amount and stop distance.
- Check current margin requirements, the instrument's tier rules, free margin and any scheduled HMR window.
- Include expected spread, commission and overnight financing.
- Reduce size or avoid the trade when liquidity, news or account conditions make the risk unacceptable.
For a broad account comparison, see our independent IC broker review. The site's Risk Disclosure explains why CFDs can cause large or rapid losses even when an account is correctly managed.
Official sources and editorial disclosure
Primary references reviewed on 14 October 2026: IC dynamic leverage and HMR framework and IC trading conditions. Always inspect current account and symbol specifications before opening an order.
IC Forex Review is independent and may be compensated through an IC partner link. That commercial relationship does not reduce market risk or provide personalised financial advice. We do not manage trading capital.
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