In this article.XM leverage.This section explains why 888x is the recommended setting.
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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.
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.
effective margin | Maximum leverage |
Less than $20,000 (approx. ¥2 million) | 888 times |
Less than $20,000 (approx. ¥2 million) | 200x. |
More than $100,000 (approx.) | 100 times |
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.

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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.
leverage | Transaction size (fixed) | Currency conversion rate | required margin |
888 times | 100,000 | 110 yen to the dollar | JPY 12,387. |
200x. | 100,000 | 110 yen to the dollar | 55,000. |
100 times | 100,000 | 110 yen to the dollar | 110,000. |
50 times | 100,000 | 110 yen to the dollar | JPY 220,000. |
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.
100 times leverage | 400 times leverage. | 800 times leverage | |
required margin | 50,000. | JPY 12,500. | JPY 6,250. |
Account balance that triggers loss-cut. | JPY 12,500. | 2,500 yen | 1,250 yen |
Number of pips that can be withstood until loss-cut | 175 pips | 195 pips | 197 pips |
The higher the leverage, the greater the number of pips allowed before a forced loss cut.
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summary
This article explains why a leverage setting of 888x is recommended for XM.
XMwellCompletely free demo account versionis available, so you can try it out risk-free.
Also, XM is giving away a $30 trading bonus to anyone who opens a new account!For more information, visit the official website atPlease check from the following links.
↓arrow (mark or symbol)
Click here for the official XM website.
*Now we're giving away a $30 bonus!