To trade on XM you need to be sensitive to stop loss and take profit. This is because if you don’t know where to cut losses and where to take profits, you will end up with endless positions. There is no such thing as a 100% win rate in Forex orders. If you do not manage risk properly, you will be asked to leave the world of Forex.
XMtrading
| Operating company | Tradexfin Limited Fintrade Limited |
| Head office location | Unit E, F28, Eden Plaza, Eden Island, Republic of Seychelles |
| Founding year | 2009 |
| Financial License | （FSA）SD010：Tradexfin Mauritius Financial Services Commission (FSC：)：Fintrade Limited Cyprus Securities and Exchange Commission (CySEC)：Trading Point of Financial Instruments Ltd |
| Language support | English、日本語、Malay、Thai |
| Platform | MetaTrader 4 (MT4)／MetaTrader 5 (MT5) |
| Service Countries | Over 190 countries |
| Number of users | Over 1 million accounts |
| Max Leverage | 1000x |
| Eligible products | Forex、Metal、Stocks、Equity Indices / Index CFD、Energy CFD、Commodities、Cryptocurrency |
What is an XM Stop Loss?
An XM Stop Loss is an order method that automatically closes a position when losses reach a certain amount or level.
Stop Loss Basics
You specify a price in advance at which you want to cut your losses.
When that price is reached, the position is automatically closed.
A risk management measure to prevent large losses.
Example:
Buy USD/JPY at 150.00
Set a stop loss at 149.50
→ Automatically close (limit your losses) when the price falls to 149.50.
Features of XM Stop Losses
① Easily set in MT4/MT5
Set when placing a new order
Can be changed even after opening a position
② Different from a forced stop loss
Stop Loss: A stop loss you set yourself
Loss Stop: XM will automatically liquidate your position if your margin maintenance rate falls below a certain level
👉 By setting a stop loss,
you can control your losses before a stop loss occurs.
Benefits of Setting a Stop Loss
Determine your loss amount in advance
Prevent emotional trading
Safe even during sudden fluctuations or when you can’t view charts
Points to Note (Unique to XM)
Slippage may occur during sudden market fluctuations
→ Your order may be executed at a price slightly less favorable than the specified price
Unexpected settlements may occur during indicator announcements or the opening of a trading window at the start of a new week
How to Set a Stop Loss in XM
This section explains how to set a stop loss (SL) in XM (MT4/MT5), step by step, so even beginners can easily understand.
Method 1: Setting a stop loss when placing a new order (basic).
This is the most recommended method.
Steps (for both MT4 and MT5)
Select a currency pair from quotes
Click “New Order”
Enter the following on the order screen:
Stop Loss: The price at which you want to cut your losses
Take Profit: The price at which you want to lock in your profits (optional)
Click “Market Sell/Market Buy”
👉 Safe because a SL is entered immediately upon opening the position.
Method 2: Setting or Changing a Stop Loss After Opening a Position
Use this when you want to “set a SL later” or “adjust the SL.”
Steps
Open the “Trading” tab in the terminal (bottom).
Right-click the position you want to set.
Select “Modify or Delete Order.”
Enter your stop loss price.
Click “Change.”
Method 3: Setting by dragging on the chart (easy).
For those who prefer visual adjustments.
Procedure
Check the position displayed on the chart
Drag the red dotted line (SL line) up or down
Remove it at the desired position
※ If the SL line is not displayed
→ Right-click the position → “Modify Order”
Important Rules for Setting Stop Losses (XM)
Minimum Setting Distance (Stop Level)
Cannot be placed within a certain number of pips from the current price
Varies depending on the currency pair and market conditions
📌 If an error occurs
→ Move the SL “a little further away” to resolve the issue.
Stop Loss Width Guidelines for Beginners
Short-Term (Scalping): 5-15 pips
Day Trading: 20-50 pips
Swing Trading: 50-150 pips
※ Adjustment based on lot size and margin is important
What is XM’s Take Profit?
XM’s Take Profit (TP) is an order that automatically closes and locks in profits when a predetermined price is reached. While this point typically depends on the timing and rate of price movements, it is determined using knowledge and experience.
The Basics of Take Profit
Specify a “take profit” price in advance.
Automatically closes when the market reaches that price.
Ensure profits without constantly monitoring the chart.
Example:
Buy USD/JPY at 150.00
Set take profit at 150.80
→ Automatically lock in profit when 150.80 is reached.
Features of XM’s Take Profit
① Easily set with MT4/MT5
Set when placing a new order
Can be added or changed even after opening a position
② Ideally, use it in conjunction with a Stop Loss (SL)
SL: Limits losses
TP: Locks in profits
👉 By setting these two together,
You can proactively manage risk and return.
Benefits of Setting a Take Profit
Less likely to miss out on profits
Prevents greed and indecision
Ensures profits even during sudden market fluctuations
Points to Note (XM Only)
Slippage may occur when indicators are announced.
During sudden rises and falls, the trade may be executed slightly later than the specified price.
Placing the TP too close to the target may result in a quick end in a rising market.
How to Set Take Profit on XM
We’ll explain three easy-to-understand methods for beginners to set take profit (TP) on XM (MT4/MT5). Look at limit orders and stop-loss orders. Set them in the same way as stop-loss orders. Overseas FX brokers allow you to set values in detail for each fund. Be sure to tap the platform to calculate the conditions. Determine the range based on your own predictions and scenarios.
Method 1: Set when placing a new order (Basic/Recommended)
This is the safest and most basic method.
Procedure (for both MT4 and MT5)
Select a currency pair from the quotes
Click “New Order”
On the order screen
Take Profit: The price at which you want to lock in your profit
(Enter a stop-loss at the same time, if necessary)
Click “Market Sell/Market Buy”
👉 TP is entered immediately upon entry, so you can leave it alone.
Method 2: Set or change after opening a position
If you want to “set TP later” or “change your target.”
Steps
Open the “Trading” tab at the bottom of the screen
Right-click the target position
Select “Modify or Delete Order”
Enter your take profit price
Click “Modify”
Method 3: Drag on the chart to set (intuitive)
For those who want to adjust while monitoring the price.
Steps
Check the position displayed on the chart
Drag the blue dotted line (TP line) up or down
Release at the desired position
Reasons for Setting Inability (Common with XM)
① Minimum Setting Distance (Stop Level)
Error if too close to the current price
Varies depending on currency pair and time period
👉 Solution: Move TP slightly away
② Wrong Buy/Sell Direction
Buy → TP is “above the current price”
Sell → TP is “below the current price”
TP guideline for beginners
| Trading Style | TP guideline |
|---|---|
| Scalping | 5～15pips |
| Day Trading | 20～60pips |
| swing | 50～200pips |
summary
There are three ways to set take profit at XM:
✔ When placing a new order
✔ Changing it after opening a position
✔ By dragging it on the chart
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