[XM Trading: For Forex Beginners] Carryover trades prohibited? swing trading risk

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XM Trading is a very popular company in the world. There are a considerable number of users, and trading styles vary from short-term trading to long-term trading. This time, it is an article about swing trading that is commonplace for long-term traders. Carry-over trade is one of the trading methods where you hold a position from the weekend to the beginning of the week and make a profit when the window is wide open, but is it prohibited in XM Trading?

Carryover trades are allowed

In conclusion, XM does not completely prohibit holding positions from the weekend to the beginning of the week. It means that it is possible to hold a position placed before Friday as it is until Monday as a “carryover trade”. If it is not possible to hold a position over a week, please be assured that FX trading itself will not work.

However, if certain conditions are met, carrying over trades may result in forced reduction of maximum leverage or forced account freezing. Please refer to the article below. Failure to do so may result in your account being frozen.

Window-filling trades are prohibited

In FX trading, it is said that the probability of the phenomenon of “window filling”, in which the open window is filled, occurs more than 80%. Many traders are paying attention to window filling because it can make a profit with a high probability if used well. On the other hand, it seems that the window filling trade is not legitimate for XM, and some measures will be taken by the department in charge. Worst case profit cancellation, withdrawal stop, account freeze. If you’re worried, check the XM precautions in advance in the article below. On the other hand, windows are allowed to open.

What is window opening

When trading forex, you may see gaps between candlesticks. This gap is called a “window” and is sometimes called a “gap”. The appearance of this window on the chart is called a “window opening” and is said to be most likely to occur on Monday when the major markets open.

why do the windows open?

I think many people know that XM FX trading can be traded 24 hours a day, but Saturdays and Sundays are basically outside trading hours. And if there is a price movement outside of these trading hours, a “window” will occur at the same time as the market opens.

What is window filling?

The phenomenon of filling the price range opened by opening the window is called “window filling”. Window filling does not always happen, but it is said that it happens more than 80% of the time.

why are the windows closed?

Among FX traders, there is a common perception that “open windows are filled with most probability”. Therefore, when a window opens, many traders hold positions in the opposite direction of the window opening in order to make a profit. As a result, a trend opposite to the direction of window opening occurs and window filling occurs.