XM Leverage explained, All about XM.com leverage or margin requirements, Finding out what is XM trading leverage for online forex trading accounts, For more information about XM Forex leverage you can visit XM review by ForexSQ.com forex website.
What Is XM Trading Leverage
Using leverage means that you can trade positions larger than the amount of money in your XM trading account. Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.
How would it be possible to trade 500 times the amount you have at your disposal? At XM you have a free short-term credit allowance whenever you trade on margin: this enables you to purchase an amount that exceeds your account value. Without this allowance, you would only be able to buy or sell tickets of $1,000 at a time.
Depending on the account type you open at XM, you can choose the leverage on a scale from 1:1 to 888:1. Margin requirements do not change during the week, nor do they widen overnight or at weekends. Moreover, at XM you have the option to request either the increase or the decrease of your chosen leverage.
On the one hand, by using leverage, even from a relatively small initial investment you can make considerable profit. On the other hand, your losses can also become drastic if you fail to apply proper risk management.
This is why XM provides a leverage range that helps you choose your preferred risk level. At the same time, we do not recommend trading close to a leverage of 888:1 due to the high risk it involves.
By this article about XM Leverage explained now you know what is XM.com leverage or margin requirements and what is XM trading leverage for online forex trading accounts, For more information about XM Forex leverage you can visit XM reviews by TopForexBrokers.com comparison and ratings forex brokers or Fxstay.com Forex trading website.
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