Direct answer
A forex broker may change your leverage when its margin and risk controls for your specific account and the specific traded instrument are updated. Leverage is not a fixed property of “forex” itself; it is a way to express how much exposure you can take relative to required margin under the broker’s current rules.
Because you may see a number change, the most useful way to think about it is: the broker adjusted the conditions that determine required margin. Lower leverage usually means higher required margin for the same position size, which reduces leverage-based risk.
Explanation: how leverage changes
What “leverage” represents
In practice, brokers set leverage through margin requirements. Margin is the collateral needed to open or maintain a position. If the broker increases the margin requirement for an instrument or account type, the effective leverage decreases.
Common, verifiable drivers
- Margin policy updates: Brokers periodically review how much margin is required to support positions under defined risk thresholds.
- Instrument-specific settings: Different currency pairs (and sometimes different contract specifications) can have different margin rates, so your leverage can appear to change depending on what you trade.
- Account- or plan-level rules: Different account types, funding methods, or tiers may have different margin and leverage limits.
- Risk-management adjustments: During periods of higher volatility or operational reviews, a broker may tighten limits to manage exposure.
Example checks
Check what actually changed
- Position and instrument: Compare the leverage/margin figures for the same instrument under the new setting.
- Required margin per unit: If the displayed required margin increased, the leverage effectively decreased.
- Account-specific details: Confirm whether the change applies to the entire account or only certain products.
Verify with documentation
Look for any update notes or policy text in your account area or trading conditions. The goal is to identify the rule that links leverage to margin (for example, “margin requirement,” “risk limits,” or “account leverage limits”).
Limitations and risks
Leverage changes do not automatically indicate wrongdoing. However, they can materially affect position sizing because the same trade size may require more margin than before.
This explanation is general and time-independent. You cannot fully verify the reason without checking your broker’s specific account terms and the margin/leverage rules currently shown for your instrument.