[XMTrading: For FX Beginners] Points to note when Hedge trading Prohibited rules Explanation of how to trade

Language Switcher

XMtradin allows “Hedging Transactions” only within the same account. By making good use of hedging transactions, you can not only hedge risks during sudden price changes, but also prevent forced loss cuts due to insufficient margin. However, depending on how you do it, you may touch on prohibited items, and in the worst case, your account may be frozen, so be careful.

XMTrading company information and features

XMTrading is an overseas Forex broker based in the Seychelles Islands and is more popular than gemforex, threetrader, axiory, bigboss, ironfx, titanfx, exness, etc. Zero cut is also adopted, which has great benefits. It has a lot of reputation and word of mouth, and automatic trading tools (EA) and scalping are also OK. There are many different stocks, and the maximum leverage is over 1000x.

There is a penalty on the official website.

There will be penalties if there is any fraudulent or prohibited behavior in the announcements on the official website. Please note that if you use it incorrectly, it will violate the terms and your account will be frozen. Also, standard accounts have xmp, bonuses, and campaigns, but be careful as your funds will be stopped if your account is frozen.

The management company has a wide range of services.

The operating company holds a financial license, so it is both safe and reliable. Regular users can trade with low fees and transaction costs. The latest information includes many limited-time campaigns, so you can participate in many events. Web terminals are also provided, and you can trade on MT4 and MT5.

What is a hedge transaction?

Hedged trading is a trading method in which both buy and sell positions of the same currency pair are held at the same time. If you hold the same lot for sell and buy positions, unrealized gains and unrealized losses will be offset, so it is a trading method that neither loses nor gains no matter how you move.

Margin becomes 0

If you do a hedge with XM, the margin will be 0. In other words, it doesn’t cost money to build both houses. No margin is required for both XM, so you can afford money and prevent forced loss cuts due to lack of margin.

Separate trading method

When hedging, different trading techniques can be performed at the same time. If you have a long-term long-term strategy and a short-term short-term strategy in one currency pair, you can enter the same currency at the same time.

get points

XM has its own point system called Loyalty Program. Therefore, by doing both construction, you can get points and earn efficiently. The more you trade, the more XM points you get, so the compatibility with both building positions at the same time is outstanding.

Avoid forced loss cuts

XM has a loss cut level of 20%. In other words, if the unrealized loss increases and the margin maintenance rate falls below 20%, it will be forced settlement. For those who trade with high leverage, it is effective as a means to temporarily prevent loss cuts.

spot the trends

If you build both in the same lot, the profit and loss will be fixed at that point. This is because whether the rate rises or falls, the profit and loss of each position will move by the same amount. By fixing the profit and loss by both construction, you can calm down and work out your future trading strategy.

long-term and short-term trades

Both long-term and short-term trades are possible at the same time. You can have a dollar-yen buy position in swing trade and a sell position in short trade at the same time.

Disadvantages and risks of having both houses

Please be aware that there are disadvantages and risks to both.

loss cut risk

Theoretically, both sides have zero plus or minus, but there is a possibility of a loss cut due to the influence of spreads and swap points. As a result, you may be forced to make a loss cut. When trading minor currencies, the negative swaps often become large, so you need to be careful.

Payment timing

Actually, you can understand what is called ryoden if you try it, but it is quite difficult. Even if you cut a loss on a negative position, it often reverses significantly and the positive position becomes negative. In this case, you will be hit with a double whammy and could end up losing a lot of money.

Not suitable for beginners

As mentioned above, it is not easy to say that it is both. Although it is good to try both houses, there are many cases where it doesn’t work out, so it is better to try it after gaining some experience.

XM’s hedging rule

Some forex brokers prohibit hedging trades. The reason is that if both buildings are abused, it will become a “winning method” that can absolutely earn money. In XM, it is conditionally OK, so let’s check it carefully.

Both within the same account and within the same currency pair

XM only allows both construction within the same account and the same currency pair. It doesn’t matter if the lot numbers are not the same.

official website

In fact, XM’s official website also accepts both constructions. Hedging with XM is no problem.

Both within the same account and outside the same currency pair

It is prohibited to build both within the same account and other than the same currency pair. If you get caught by XM, you will be subject to withdrawal refusal and account freezing for profits, so be careful. By the way, there are some other prohibited items, so let’s read the following article carefully.