[XM Trading: For Forex Beginners] All Stop Levels Are 0 Advantages and Disadvantages

XM Trading boasts immovable popularity among FX traders. In August 2021, XM Trading announced that the stop level will be uniformly set to “0” for all stocks and products. This is good news for traders using XM Trading. However, some people don’t know what the stop level means in the first place, so I’m writing this article.

[XM Trading: For Forex Beginners] What is Stop Hunting?

In order to provide a safe and reliable trading environment, XM makes sure to avoid any problematic behavior. However, there are rumors on the street that they are being hunted for stop. Is this information true?

www.globalforextradesite.work

2023.01.11

What is stop level

The stop level is the numerical value applied when placing a limit (stop loss) order. The stop level refers to the price range that must be the minimum interval from the current price. The stop level is generally set independently by the Forex trader, and it is important to check it before trading because there are cases where it differs depending on the brand and account even in the same trader.

For example, if the current price of the dollar/yen is “150.50 yen” and the stop level is “5 pips”, it is required to place a limit order (stop order) with an interval of 5 pips or more from “150.50 yen”. It is necessary to specify the price at the price of “¥150.45 or less”.

Should it be wider or narrower?

A narrower stop level is better than a wider one. If the stop level is narrow, you can freely set a limit price near the quoted price. If the stop level is too wide, the order price will need to move beyond the stop level and you may miss out on the profit.

Especially in short-term trading such as scalping, the weight of 1 pip is large, so it can be said that the wide stop level may hinder good performance and smooth trading. Narrower stop levels allow you to build clear and repeatable trading plans.

What happens if the stop level is too high?

If the stop level is high, pending orders such as limit orders and stop orders will be restricted. Pre-orders cannot be placed within stop levels, which limits your freedom and makes trading difficult. If you want to trade without stress with the order you want, choose an overseas Forex broker with a stop level as small as possible.

stop level is zero

XM’s stop level is zero. There will be a major update in 2021, with zero spreads for all products handled by XM. The stop level for all account types and all products is 0 pips. When setting limit/stop orders and limits, it is now possible to set any price.

How to check the stop level of XM

To find out the stop level of XM, there is a way to check it on the homepage.

After logging in, access the page of “Trading products” → each product.

For the English version, access each product page from “INSTRUMENTS”.

At the far right of the list of conditions for each product, there is a “Limit and Stop Price Level”, which is the stop level. We can see that the stop level is zero for all account types and all instruments.

Do stop levels change on XM accounts?

In addition to the “Standard Account” and “Micro Account”, XM offers a “Zero Account” with an unlimited spread. At XM, the stop level is uniformly set to “0” regardless of the account. So it doesn’t matter which account you choose.

[XM Trading: For Forex Beginners] Comparison of Account Types and Differences

As of 2023, there are about 4 account types on XM. I will explain the differences between each, but if you are a beginner, we recommend starting with the standard account. This is because there are many people who don't know the difference, and it's preferable to change the steel type if you're not happy with it after using it.

www.globalforextradesite.work

2022.12.31

The stop level figures are different for each Forex trader

The reason stop levels are commonly set is to balance server load. The lack of stop levels increases the risk of server downs due to excessive scalping and automated trading. XM Trading has a stop level of 0, so it can be said that it is a Forex company where you can trade very comfortably.

Let’s compare the stop level 0 of XM with the stop levels of other overseas Forex brokers.

If you want to increase your winning rate in Forex trading, we recommend that you choose a Forex broker whose stop level is as low as possible.

Advantages of stop level 0

With stop level 0, you can place orders at the price you want. If there is a stop level, a pre-order can only be placed at a price that is separated from the current price by the stop level. In addition, XM Trading with a stop level of 0 allows you to proceed with scalping trades in an advantageous manner. Scalping trades with a small price range of a few pips, so it is difficult to make a profit if orders are restricted at the stop level. It is said that scalping is not suitable for XM trading with wide spreads, but if the stop level is 0, it will be useful enough.

[XMTrading: For FX Beginners] Latest real account opening method and procedure, required documents, important points explained

XM Trading is the world's most used Forex broker. In order to actually do Forex, it is necessary to have a wide account at a Forex company. By the way, opening an account is easy even for beginners, and there is no cost. Opening an account may sound troublesome, but it only takes about 10 minutes to fill in the registration form and about 30 minutes to authenticate the required documents. It will be possible to start.

www.globalforextradesite.work

2022.12.30