Mechanism of Leverage & Margin on XM Trading (XM Global)

XM offers 1:888 High Leverage

XM Trading provides its customers with consistent margin requirements and flexible leverage from 1:1 to 888:1.

• Flexible leverage rate from 1:1 to 888:1
• No loss beyond the deposit amount
• Monitor risk impact in real-time
• No change in margin rate at night and weekends

Trade with XM’s 1:888 Leverage

What is Margin of Forex?

Margin acts as collateral for losses incurred during a transaction.

Margin is expressed as a percentage of the position size (eg 5% or 1%). The only purpose of holding funds in your trading account is to secure sufficient margin. For example, with a 1% margin, a $ 1 million position requires a $ 10,000 deposit.

For Forex, Gold and Silver, you can open a new position only if the required margin for a new position is less than or equal to the surplus margin of your account. When building both, the required margin for both positions is zero, so you can open a position even if the margin maintenance rate is less than 100%.

For all other stocks, it is possible to open a new position only if the required margin of the new position is less than or equal to the surplus margin of the account. When building both, the required margin for both positions is 50%. A new double-decker position can only be opened if the final required margin is less than or equal to the total valid margin of the account.

Go to XM Official Website

What is Leverage of Forex?

Leverage allows you to trade more positions than your account balance. Leverage is expressed as a ratio, such as 50: 1 (50x), 100: 1 (100x) or 500: 1 (500x). Suppose you have $ 1,000 in your trading account. If you trade $ 500,000 against the yen, you will have a leverage of 500: 1.

How can you trade 500 times as much money? This is because XM Trading offers free short-term set allocation funds when trading with margin. This allows you to purchase currency amounts that exceed your account balance. Without this money, you could only buy and sell $ 1,000 at a time.

Open XM’s Trading Account

High Leverage 1:888 of XM Trading

Depending on the account type you open in XM Trading, you can choose the leverage in the range of 1: 1 to 888: 1. Margin requirements do not change during the week and do not increase at night or on weekends. In addition, XM Trading accepts customer-default leverage change requests.

Leveraging can make a lot of money with a relatively small initial investment. On the other hand, without proper risk management, losses can increase many times.

XMTrading offers a range of leverage to help you choose your desired risk level. At the same time, we cannot recommend it because the risk is significantly higher when the leverage is close to 888: 1.

Trade with XM’s 1:888 Leverage

Monitor the leverage 24/5 in real-time

XMTrading allows you to control the impact of risk in real time by monitoring your margin and available margin.

The total amount of the holding account is the sum of the margin used and the margin used. Margin usage is the funds that must be deposited as deposits in order to conduct a transaction. (For example, if you set the leverage of your account to 100 times, you need to keep 1% of the transaction amount as the required margin.) The available margin is to take an additional position or absorb the loss. It is the balance of the holding account that can be used for, and varies depending on the total amount of the holding account.

Go to XM’s Official Website

Margin Call and Stop Out Level of XM

Although you are solely responsible for monitoring the movement of your trading accounts, XMTrading follows Margin Call’s policy so that the greatest possible risk does not exceed your total account value.

As soon as the total amount of holdings is reduced to 50% of the margin required to maintain an open position, a margin call will be issued to warn that there is not enough funds to maintain an open position.

Stop-loss level means the effective margin level at which open positions are automatically closed. When the effective margin of the trading account is 20% or less of the required margin, the loss cut level of the customer account is reached.

Trade with XM’s 1:888 Leverage