XM's maximum leverage is 888 times! Explanation of why we recommend it.

In this article.XM leverage.This section explains why 888x is the recommended setting.

What is XM's maximum leverage of 888 times?

First, let's review an overview of leverage.

Leverage is a mechanism that allows a large transaction to be made with a small amount of money. Leverage is sometimes likened to the [principle of leverage], as it allows large currency amounts to be traded with small amounts of money.

The higher the volume of currency traded, the greater the profit.

XM has one of the highest leverage multiples of any overseas FX provider, with a maximum leverage of 888 times.

The difference between the two is significant - more than 30 times - as domestic FX is regulated by the Financial Services Authority with a maximum leverage of 25 times.

However, to use 888 times leverage, the effective margin must be below a certain amount.

In this case, the effective margin is the sum of the account balance and unrealised gains/losses, but this total amount is not per account.

The total amount of all accounts, held by one person.

XM allows up to eight accounts per person.

Traders using multiple accounts should also be aware of the total amount of margin available.

How to check XM leverage

For more information on how to check XM leverage, see the following article.

XM Textbooks.

Summary of how to check XM leverage | XM textbooks This article explains how to check XM leverage. How to check or change your leverage on XM How to check your leverage on XM Access the XM member page ま...

Why XM's leverage setting of 888x is recommended.

It is recommended that the maximum leverage setting for XM is 888 times. The reasons for this are explained in turn.

The higher the leverage on XM, the lower the margin requirement.

The higher the leverage on XM, the lower the margin requirement, which is why 888x is recommended.

For example, let's say you place a 10,000 currency order at 110 yen to the dollar.

Beginning forex traders are reluctant to spend large sums of money on a single trade.

However, if the amount of currency is reduced, profits are also small and the dilemma is that it is difficult to make money.

With leverage set at 200x to 888x, you can hold 10,000 currencies for as little as a few thousand yen and earn a tidy profit.

Because it works best with scalping.

Scalping is a trading style in which traders repeatedly buy and sell in short periods of time, accumulating small profits.

Low trading volumes mean that profits are negligible, so leverage is required to increase trading volumes.

Some forex companies prohibit scalping, but XM does not.

Traders who mainly scalp should set their leverage to 888 times.

The higher the leverage, the more loss-cutters you can withstand.

XM will confirm a loss if a forced loss cut is triggered, but the higher the leverage, the better able you are to withstand the loss cut.

Let's compare the assumptions: account deposit of 100,000 yen, USD/JPY 100 for 50,000 currency, and loss-cut level of 20% or less of margin maintenance.

The higher the leverage, the greater the number of pips allowed before a forced loss cut.

summary

This article explains why a leverage setting of 888x is recommended for XM.