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Only four stocks are recommended for CFD trading on XM (XMTrading).

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In this article. XM (XMTrading)This section describes CFD trading in the following areas, including recommended stocks.

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.

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What is CFD trading?

CFD stands for Contract For Difference and is translated as [Contract For Difference] in Japanese.

In other words, FX (currency-to-currency) trading is also a type of CFD trading, as it is a transaction aimed at price fluctuations.

FX is a term used in CFD trading to refer only to [currency pairs], but CFDs include not only currency pairs but also stocks such as global stock indices (e.g. Nikkei Stock Average and Dow Jones Industrial Average), precious metals (e.g. gold (GOLD)), commodity futures (e.g. oil (OIL)), bonds and individual stock CFDs.

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Why CFD trading with XM (XMTrading) is recommended.

XM (XMTrading) has a large number of CFD stocks.

The advantage of trading CFDs with XM is the number of CFD stocks available, but by comparing XM's CFDs with those of other companies.

Number of issues of CFDs XM XM GEMFOREX
all 47 types. 15 types. 14 types.
Stock indices (cash) 18 types. 9 types. 10 types.
Stock indices (futures) 12 types. an unknown an unknown
Commodities (commodities) 8 types. an unknown an unknown
metal 4 types. 4 types. 2 types
energy 5 Type. 2 types 2 types

Thus, XM's large number of CFD stocks is obvious when compared to popular international FX providers such as TitanFX and GEMFOREX.

The large number of stocks handled by CFDs means that it is easier to formulate strategies, as the correlation between stocks and the overall market trend can be grasped.

I can trade with a low margin requirement.

For domestic firms, CFD trading tends to have higher margin requirements due to lower leverage. However, with foreign firms such as XM, the margin requirements are much lower.

Main trading conditions
(Nikkei 225)
XM
(Overseas traders)
GMO Click Securities.
(Domestic traders)
Margin requirement (100 units) 10,000 yen 200,000 yen

Comparing the Nikkei 225, the amount of margin required for trading starts from JPY 10,000 for XM and JPY 200,000 for GMO Click Securities.

Many users of domestic providers say [CFDs are difficult to handle because of the high margin requirements], but XM's CFDs have fairly low margin requirements, making it easy for individual investors with small amounts of money to invest in CFDs.

However, it should be noted that the margin requirements vary depending on the underlying stock for CFD trading.

Because it handles both futures and cash.

XM GEMFOREX TitanFX AXIROY.
stock price index
(in kind)
18 10 9 10
stock price index
(Futures)
12 0 0 0

XM is one of the few international forex firms offering both futures and cash.

The attraction of CFD trading at XM is that you have a wide range of choice and can select the stocks that suit you from a variety of financial instruments by having a good handle on both types of trading.

You don't need a dedicated CDF account.

Most forex firms require separate accounts for forex and CFDs. This has the disadvantage that it is time-consuming to switch accounts and deposit funds into separate accounts.

On the other hand, XM does not require a dedicated account for CFDs; the advantage is that you can trade FX and CFDs in the same account, making it easier to manage your money.

It's possible to operate with high leverage.

XM allows CFD trading with high leverage. The maximum leverage is [888 times], which allows you to move large amounts of money with little capital.

The maximum leverage of domestic FX companies is 10 times, so people without a large sum of money cannot even start trading CFDs.

Another advantage of XM is that you can start CFD trading with a minimum margin requirement [10,000 yen]. While other major international FX firms require a minimum margin requirement of around ¥20,000 for CFD trading, XM allows you to start CFD trading with only one-half that amount!

I have a good bonus.

XM offers four bonuses: [Account Opening Bonus], [Deposit Bonus], [Loyalty Programme] and [Refer-a-Friend Bonus].

Account opening bonus

The account opening bonus is a bonus of 3,000 points (credits) that can be used for trading worth 3,000 yen just for opening an account. This means that you can start trading without having to make a deposit.

loyalty programme

Loyalty programmes award points for each lot transacted, and the points awarded can be exchanged for cash or credit.

Friend Bonus

The friend bonus literally means that if you refer a friend, a bonus is given to both parties. The conditions for receiving the bonus are a little difficult, but the key point is that you can receive it in cash.

Deposit bonus

Deposit bonuses are credited according to the amount of the deposit, with 100% credit given up to JPY 50,000. So, with a deposit of JPY 50,000, you can effectively trade JPY 100,000.

For more information on deposit bonuses, see the following article.

XM Textbooks.
What is XM's 100% deposit bonus? In-depth explanation of the deadline/how to receive it | XM textbooks This article provides a thorough explanation of XM's 100% deposit bonus. What is XM's 100% deposit bonus? How to receive it explained XM offers a 100% deposit bonus of up to $500 and up to $4,...

XM's reputation and reviews on CFD trading.

Regarding the online reputation and reviews of XM's CFD trading, we can judge that it is a good one.

Perhaps because XM is the most popular international FX provider in Japan, it tends to have more people trading CFDs than other providers.

In the opinion of those who use XM, the variety of stocks and the high leverage without additional fees seem to be the main attractions of XM compared to domestic CFD trading.

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4 CFD stocks recommended by XM.

CFD stocks recommended by XM are.[Gold][Crude oil][Nikkei 225][Dow Jones Industrial Average].The four types are.

gold

Gold itself has universal value, as it has long been used in currency, ornaments and jewellery, and in recent years it has been used as a component in electronic devices.

As such, it is one of the most in-demand instruments in CFD trading and is recommended for beginners, as it is easy to maintain large trends and has high volatility.

crude oil

XM Crude Oil is characterised by higher volatility than other commodities. This makes it quite compatible with short-term trading, such as scalping, and allows for large profits even in a short period of time.

However, high volatility means that there is also risk. Therefore, take care when trading crude oil.

Nikkei 225

The Nikkei Stock Average is a stock price index calculated from the share prices of major companies listed on the Japanese stock exchanges and is used to analyse trends in the Japanese economy.

In addition, [Japanese government announcements on the economy and business climate] and [Japanese economic indicators], which affect the Nikkei 225, are published in Japanese, making it an advantageous stock for Japanese people in terms of immediate access to information on the Nikkei 225.

It is also recommended for those interested in stock trading, so we recommend that you start by trading the Nikkei 225 with XM.

Dow-Jones average

The Dow Jones Industrial Average is a stock price index made up of the share stocks of 30 major US companies. As it is the most influential indicator of the global economy among all stock indices, fluctuations in the Dow Jones Industrial Average can change the price movements of major currency pairs.

It is also characterised by its susceptibility to global developments. In recent years, the Dow Jones Industrial Average plunged by nearly USD 10 000 in March 2020 due to concerns about the spread of the coronavirus.

However, the Dow Jones Industrial Average is an excellent way to trade with reduced risk, as it provides a meaningful diversification across large US companies.

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What to look out for when trading CFDs with XM

Distinguish between futures and cash

CFDs on stock indices are divided into [futures] and [cash].

Futures are [trading instruments with a fixed expiry date] and are compulsorily settled when the specified expiry date arrives. In contrast, cash is a [trading instrument without a fixed expiry date] and is not compulsorily settled like futures.

Comparing the features of futures and cash, you may feel that [cash with no expiry date is better value], but depending on the holding period, futures may have lower transaction fees.

For example, in the case of cash, if a position is held for more than one day, a commission is charged. In the case of futures, on the other hand, if you maintain a position for more than one day, no commission is charged until the settlement deadline.

If you are going to maintain a position over the medium to long term until the settlement deadline, it is easier to reduce the total amount of commissions if you choose futures rather than cash.

Orders are in lots of one.

At XM, all CFD stocks are ordered in 1-lot units, with the exception of Gold and Silver.

Please note that orders cannot be placed in decimal lots (e.g. 0.1 lot, 1.5 lot, etc.).

In addition, trading in single lots tends to require a higher margin requirement. Depending on the amount of funds you have, one option is to use a micro-account with a lower original transaction amount per lot.

For more information on the 1-lot unit, see the following article.

XM Textbooks.
How much does XM charge per lot? How to calculate and the relationship between margin requirements! | XM Textbook This article explains [lots], which is an unavoidable part of XM. What is a [lot]? In Forex, a [lot] is a trading unit. In forex trading, trading ...

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*Now we're giving away a $30 bonus!

summary

In this article. XM (XMTrading)s CFD trading, including recommended stocks.

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!

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