[XM Trading: For Forex Beginners] Leverage regulation $20,000 (2 million yen) and $100,000 (10 million)

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Do you know that XM arbitrarily regulates leverage when the balance exceeds a certain amount? At a certain amount, this regulation occurs. This regulation is to be activated when the total balance of all accounts reaches a certain amount.

Leverage limit

Most cases where leverage is regulated or restricted are due to account balances. XM imposes leverage limits as your account balance increases. Leverage regulation comes into play when the following conditions are met: There is no prior contact from the XM side, and if the total amount exceeds the upper limit, the leverage will be changed automatically.

account balanceMaximum leverage
Less than $20,000 (about 2 million yen)1,000 times
$20,000 (about 2 million yen) or more200 times
$100,000 (about 10 million yen) or more100 times

If you want to take advantage of 1000 times leverage, which is one of XM’s attractions, you need to adjust your account balance to less than $20,000 (about 2 million yen).

Leverage limit by total margin amount

XM can have multiple accounts and can open up to 8 accounts. You can also transfer funds between accounts at your own discretion, but as a rule of XM, “leverage changes depending on the total margin amount”.

Leverage changes also apply to held positions

Leverage changes will also be applied to open positions. This may result in forced loss cuts.

Manual change of leverage

It seems that the leverage limit is not done automatically, but when the balance exceeds a certain amount, the department in charge judges and limits it manually. Since it is decided at the discretion of the person in charge, the judgment criteria are also up to the person in charge.

Leverage limit even during events

There are other leverage restrictions as well. For example, leverage limits may apply when there is an election or referendum. When Switzerland stopped intervening in the foreign exchange market, the FX company’s risk management was reviewed, and when there was the issue of Britain’s withdrawal from the EU, the company lowered its leverage.

How to remove the leverage limit

In order to restore the leverage, you have to withdraw once, make the balance $ 20,000 (about 2 million yen), and contact support to request a change in leverage. I used to be able to easily change the leverage of my account from my page, but now I can’t. Please refer to the following article for contacting the support center.

Leverage calculation method

XM’s leverage calculation method is as follows.

Leverage = trading volume x currency price ÷ account balance

How to check and change leverage

At XM, you can check and change your leverage in 3 steps. After logging in, you can change it by opening My Account and pressing the pencil mark next to your trading account’s leverage. However, if the balance is too large as described above, it is manually regulated by XM, so you need to contact the support center.