Leverage cuts before the weekend: the quiet policy that closes positions

[Shadow Trader]

A few brokers reduce maximum leverage on Friday afternoon, sometimes to a fraction of the weekday level, and restore it on Monday. The reason is gap risk, and it's reasonable from the broker's side.

For a trader holding positions through the weekend, the effect is brutal. Margin requirements jump, the margin level drops, and positions can be closed automatically before the market even shuts.

Typical places where it appears:

- Funded accounts, which often have a hard rule about weekend holds
- Cent and micro accounts with high leverage
- Exotic pairs and indices
- Accounts on promotional terms

Reading the leverage policy page carefully is the only reliable defence. It sometimes lists exact times and instruments.

A quick calculation helps. At the Friday leverage level, how much margin would the open positions need? If the answer is close to the account balance, the weekend is risky for reasons that have nothing to do with the market.

Does the broker publish its weekend leverage rules, and are they followed as written?