XM - What's now?
XM has updated the maximum leverage to 1:1000 in June 2022.
Leverage 1:1000 does not apply to client registered under the EU regulated entity of the Group. The maximum leverage for Trading Point of Financial Instruments is 30:1.
- Trade Minor and Exotic FX Currency Pairs with XM
- Why you should trade Minor/Exotic Currency Pairs?
Trade Minor and Exotic FX Currency Pairs with XM
There are more than 1,000 financial markets that you can trade with XM.
Among many markets (such as CFDs, Precious Metals, Stocks, Stock Indices, and etc) the Forex market is obviously the most popular financial market among traders of XM.
There are major, minor and Exotic currency pairs available for trading on XM MT4 and MT5 platforms.
Especially the rare and exotic currency pairs such as the following might not be available with many other brokers, but only with XM.
- Danish Krone (DKK)
- Hong Kong Dollar (HKD)
- Norwegian Krone (NOK)
- Russian ruble (RUB)
- Turkish Lira (TRY)
- Chinese Yuan Renminbi (CNH)
- Mexican Peso (MXN)
- South African Rand (ZAR)
By opening an account with XM, you can trade the above currencies paired with USD, EUR or GBP.
Trading the above exotic currencies will bring you diversity and additional opportunities for your investment portfolio.
Why you should trade Minor/Exotic Currency Pairs?
All traders of XM can invest in the Exotic currency pairs.
Each financial market and currency pair has a different market trend and characteristic.
That means you have opportunities to place traders differently on each market.
Even if your trading strategy is only one, it could work well on some markets and work badly on others.
Before start trading Minor/Exotic Currency Pairs with XM, let’s see the main characteristics of these currency pairs in general.
1. High Swap Points
Minor/Exotic currency pairs tend to have high swap points.
A swap point is an overnight financing adjustment or fee, which will be credited or charged on your accounts at 00:00 in server time.
By carrying over positions overnight (in server time of XM), you will earn or pay for the swap points according to the volume, symbol and direction of your trade.
In fact, Minor/Exotic currency pairs are popular for earning swap points and you can surely earn high swap points on XM MT4 and MT5 too.
You can see the daily swap rates of each currency pair in XM Official Website.
2. High Volatility of Market Price Movement
Minor/Exotic currency pairs tend to have low liquidity, and that allows a medium-higher order volume to affect the market price movements easily.
This means that market prices tend to move quickly and dramatically often.
You may look at the charts for the past price movement of Minor/Exotic currency pairs and you will see how different they are from the market charts of major currency pairs.
By using this characteristic, you can also see profitable trading opportunities.
3. Wider Spread
As explained above, Minor/Exotic currency pairs have low liquidity in the market.
This leads to a higher spread (a difference of bid and ask prices) comparing to other markets.
With XM, you can trade from 0.0 pips raw spread with a small amount of commission, but in the case of some Minor/Exotic currency pairs, the spread itself could be much wider due to the low liquidity in the market.
This condition is inevitable and is almost the same for all brokers.
You can see a real-time spread in XM Official Website and assess the involved trading cost for your strategy.
4. Limited Leverage
Due to the high volatility in the market prices of Minor/Exotic currency pairs, XM will need to decrease the leverage to limit the risk exposure, to protect both the company and traders.
For all account types on the MT4 and MT5 platforms, the leverage for EURDKK, EURHKD, GBPDKK, USDDKK, USDHKD, USDCNH, EURRUB and USDRUB is capped at 1:50, and for USDTRY, EURTRY it is capped at 1:100.
For all account types, the leverage is capped at 1:400 for all CHF currency pairs on the MT4 and MT5 platforms.