XMTrading: Points to note when Hedge trading Prohibited rules Explanation of how to trade


Is it possible to use both trading methods with XMTrading? This article explains the prohibitions in FX trading accounts, how to do both, benefits, and precautions. At XMTrading, “dual denominated trading” is only possible within the same account. By making good use of double-denominated trading, you can not only hedge the risk in the event of sudden price changes, but also prevent forced loss cuts due to insufficient margin. However, depending on how you do it, you may be violating prohibited matters, and in the worst case scenario, your account may be frozen, so be careful.

XMTrading company information and features

XMTrading is an overseas Forex broker based in the Seychelles Islands and is more popular than gemforex, threetrader, axiory, bigboss, ironfx, titanfx, exness, etc. Zero cut is also adopted, which has great benefits. It has a lot of reputation and word of mouth, and automatic trading tools (EA) and scalping are also OK. There are many different stocks, and the maximum leverage is over 1000x. This is a highly recommended broker compared to other companies. Click the button below to get started right away.

There is a penalty on the official website.

If there is any misconduct or prohibited behavior specified in the announcement on the official website, there are different types of penalties. If you use it incorrectly, you will violate the terms and conditions and your account will be frozen at the same time, so be careful. Also, with standard accounts, there are XMP and operational bonuses and campaigns, but if you freeze your account, instead of accumulating money, it will be canceled or your funds will be stopped, so be careful. Please be careful when starting.

The management company has a wide range of services.

The operating company holds a financial license, so it is both safe and reliable. Regular users can trade with low fees and transaction costs. The latest information includes many limited-time campaigns, so you can participate in many events. Web terminals are also provided, and you can trade on MT4 and MT5. We also have a financial license, so you can rest assured that there is no big risk even if your margin becomes negative, as zero cuts will occur in the system.

What is a bilateral transaction?

Double-sided trading is a trading method in which multiple buy and sell positions of the same currency pair are placed and held simultaneously at the market price. If you hold buy and sell positions in the same lot, unrealized gains and losses will be offset, so this is a trading method that will result in no loss or gain no matter how it moves. When one market price fluctuates significantly due to economic indicators, etc., another entry is entered. As it is officially recognized as a reference, it is summarized below.

A lot of margin is required

When performing double-denomination with XM, a large amount of margin is required as a mechanism. In other words, it costs money to do both. Since XM double-denominated trading involves both buying and selling, you won’t have enough money to manage it, so you will need double the funds to prevent forced loss cuts due to lack of margin. You need money to do it safely.

Separate trading method

When performing both trades, you can use different trade methods simultaneously. If you have a well-developed purpose and strategy of going long in the long term and short in the short term in one currency pair, it is possible to enter into the same currency at the same time. You can also aim for a lot of pips. You can also trade immediately with a tap on the smartphone app.

get points

Currently, XM broker has its own point system called loyalty program. Therefore, by doing both, you can earn new points and earn more efficiently. The more you trade, the more XM points you receive, so it is very compatible with both positions that are opened at the same time. Basic earnings can also be returned to cash.

Avoid forced loss cuts

XM has a stop loss level set at 20%. In other words, if unrealized losses increase and the margin maintenance rate falls below 20%, forced liquidation will occur. For those who trade with high leverage, it is effective as a means to temporarily prevent loss cuts. On the other hand, due to rapid market fluctuations, if you fail, you may end up completely bankrupt.

spot the trends

If you build both in the same lot, the profit and loss will be fixed at that point. This is because whether the rate rises or falls, the profit and loss of each position will move by the same amount. By fixing the profit and loss by both construction, you can calm down and work out your future trading strategy.

long-term and short-term trades

Both long-term and short-term trades are possible at the same time. You can have a dollar-yen buy position in swing trade and a sell position in short trade at the same time.

Disadvantages and risks of having both houses

Please be aware that there are disadvantages and risks to both. Don’t make the lot price expensive and use your surplus funds. Specifically, the following points are listed, so be sure to completely understand the points before proceeding.

loss cut risk

Theoretically, both sides have zero plus or minus, but there is a possibility of a loss cut due to the influence of spreads and swap points. As a result, you may be forced to make a loss cut. When trading minor currencies, the negative swaps often become large, so you need to be careful.

Payment timing

Actually, you can understand what is called ryoden if you try it, but it is quite difficult. Even if you cut a loss on a negative position, it often reverses significantly and the positive position becomes negative. In this case, you will be hit with a double whammy and could end up losing a lot of money.

Not suitable for beginners

As mentioned above, it is not easy to say that it is both. Although it is good to try both houses, there are many cases where it doesn’t work out, so it is better to try it after gaining some experience.

XM’s hedging rule

Some forex brokers prohibit hedging trades. The reason is that if both buildings are abused, it will become a “winning method” that can absolutely earn money. In XM, it is conditionally OK, so let’s check it carefully.

Both within the same account and within the same currency pair

XM only allows both construction within the same account and the same currency pair. It doesn’t matter if the lot numbers are not the same.

official website

In fact, XM’s official website also accepts both constructions. Hedging with XM is no problem.

Both within the same account and outside the same currency pair

It is prohibited to build both within the same account and other than the same currency pair. If you get caught by XM, you will be subject to withdrawal refusal and account freezing for profits, so be careful. By the way, there are some other prohibited items, so let’s read the following article carefully.


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