Buzz
In the previous article, Mytour introduced the XM Forex platform. In this article, Mytour will provide you with more information about leverage, and what is the risk of leverage on XM?
Overview of XM Forex broker
XM ranks among the top forex trading platforms that are not widely known in the market, offering customers both MT4 and MT5 trading platforms. The trading platform is headquartered in Cyprus.
Using leverage to execute trades on the XM platform means customers can utilize borrowed capital instead of their own funds in the XM account they are using for profitable investments.
XM is the only trading platform that provides leverage of 1:888 in the market. To illustrate, consider the following example: Suppose your XM account has $1,000 and the Position Size is $400,000 USD/JPY, your leverage will be 400:1.
Trading assets with over 60 different currency pairs and more than 100 financial instruments, customers can execute trades via mobile on 8 different advanced trading platforms.
One of the benefits of using leverage on the XM platform is that clients can customize their leverage, increasing or decreasing it as desired. XM's leverage can vary depending on the client's account type, so they can choose leverage ranging from 1:1 to 1:888.
Specifically, if using a Micro account, the leverage is 1000:1, for a Standard account it's 400:1, and for an Executive account it's 300:1.
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Read more: NAGA platform review
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How much risk does leverage on XM involve?
Even when trading with a small amount of money, customers can still profit, but risks can still occur if not managed properly. XM provides customers with leverage options, allowing them to choose different levels of risk.
XM Account Types and Leverage
- Micro Account: This type of trading account is suitable for beginners to the trading platform, used to experiment with trades.
The Micro Account offers leverage of 1:500, spreads from 1 pip, and no commissions, allowing for up to 150 simultaneous orders, and customers can open an account at any time.
- Standard Trading Account: This account is suitable for experienced traders, with a maximum leverage of 1:400 and fixed spreads, allowing for up to 300 simultaneous orders, with a maximum deposit of 5 USD.
- Executive Account: A maximum deposit of 100,000 USD is required to activate this account. This type of account is mainly for traders with substantial funds, offering a maximum leverage of 1:300, variable spreads starting from 0.2 pips, and allowing for up to 400 simultaneous orders.
Trading Assets
XM supports various trading assets, including:
- Commodities
- Gold and silver
- Stocks
- Oil
- Stock indices
- Contract for Difference (CFD)
Customer Support
XM offers customer support 24/5, addressing any requests or complaints from customers. Services are available in multiple languages: Arabic, Bulgarian, Greek, German, Hindi, English, Polish, Spanish, Slovak, Malay, Korean, Italian, and Japanese.
Leverage and Margin on XM
Traders may sometimes confuse leverage with profit.
Simply put, leverage involves using debt to profit from assets, more accurately it's a form of debt, using borrowed capital instead of own funds to invest for profit.
On XM, traders can control Used margin and Free margin, as well as the level of risk. When a trader's orders reach a certain level of loss, the broker is obliged to execute a Margin Call.
So, this article above Mytour just introduced to you how much risk leverage on XM entails. If you are trading on the Binomo trading platform, you also need to Pay attention when depositing money into Binomo. Hopefully, after this article, you will have more information about this forex broker and make decisions on whether to trade or not.
