XM Bitcoin High Leverage Trading

XM Bitcoin Leverage Trading

1. About XM Bitcoin Leverage Trading

2. The difference between XM’s Bitcoin leverage trading and spot trading

3. The benefits of trading Bitcoin with leverage at XM

4. XM’s recommended account type for Bitcoin leverage trading

5. Points to note when trading Bitcoin with leverage at XM

6. Q&A about XM’s Bitcoin Leverage Trading

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What is Leverage?

Leverage refers to a mechanism for trading using an amount larger than the funds you have on hand . Specifically, the trading amount is the amount of margin multiplied by the leverage, so if you deposit 100,000 yen in margin into an account with a 500x leverage, the amount you can trade will be 50 million yen. If you increase the leverage ratio, the amount you can trade will increase even with the same margin, so you can trade larger amounts with a smaller margin .

XM allows you to trade with leverage using CFD products such as foreign exchange (FX currency pairs), precious metals, and stocks, but you can also trade with leverage on Bitcoin. If you are interested in Bitcoin trading but find it difficult to prepare a large amount of capital, you can enjoy Bitcoin trading with leverage on XM and start trading with a small amount of capital.

XM’s Bitcoin trading leverage is up to 500x

XMTrading is an FX broker that is known for its high leverage trading, and you can trade not only FX currency pairs but also Bitcoin with high leverage. Specifically, XM allows you to trade Bitcoin with up to 500x leverage .

Increasing leverage increases the amount that can be traded with the same margin. For example, if you trade Bitcoin with a margin of 100,000 yen, the amount that can be traded is 200,000 yen if the leverage is 2x. However, if you increase the leverage to 500x, the amount that can be traded becomes 50 million yen.

By trading with high leverage, the amount that can be traded increases, which increases the “profit rate .” For example, if you prepare a margin of 100,000 USD, hold a long position when BTCUSD = 50,000 USD, and close the position when it reaches 60,000 USD, you will have earned a profit margin of 1 USD (100 pips). The difference in profit between 2x leverage and 500x leverage is as follows:

As leverage increases the trading amount, the profits you can earn from the same price range will also increase. Furthermore, XM employs a zero-cut system, so even if you incur losses greater than your margin due to a sudden market rise or fall, XM will compensate for the negative amount and reset your balance to zero, so you can rest assured. XM’s Bitcoin trading offers up to 500x leverage, a zero-cut system, and some of the tightest spreads in the industry. By taking advantage of tight spreads, you can efficiently aim for profits with small amounts while keeping trading costs down.

Learn more about XM Bitcoin spreads

XM Bitcoin supports five types of leverage trading

XMTrading’s Bitcoin trading offers a total of five products, combining Bitcoin with four currencies (USD, EUR, GBP, JPY) and one cryptocurrency (ETH) . The trading conditions for each Bitcoin product offered by XM are as follows. Spreads are subject to change, so please check the latest figures when trading.

XM Trading Conditions for 4 Bitcoin Stocks

XM’s Bitcoin trading allows up to 500x leverage for two products: BTCUSD (Bitcoin/US Dollar) and ETHBTC (Ethereum/Bitcoin) . The maximum leverage for BTCEUR (Bitcoin/European Euro), BTCGBP (Bitcoin/British Pound), and BTCJPY (Bitcoin/Japanese Yen) is 250x.

Additionally, these five products differ in the currencies (products) they are paired with when trading Bitcoin, resulting in different price movements. ETHBTC (Ethereum/Bitcoin) in particular is a combination of virtual currencies, so its price movements differ significantly from those of currency combinations. Trading conditions such as minimum/maximum lots and spreads, as well as price trends, vary depending on the Bitcoin product, so please check the details of each product before starting leveraged Bitcoin trading with XM.

Click here for details on XM Bitcoin trading conditions

About XM Cryptocurrency Tiered Margin Rates

XMTrading uses “tiered margin rates” for Bitcoin trading . Tiered margin rates are a system in which leverage fluctuates depending on the trading volume (lot) held . The higher the trading volume, the lower the leverage, allowing you to trade Bitcoin with a risk that matches the trading volume.

Generally, when trading with leverage, the risk of failure increases in proportion to the trading volume. Bitcoin, in particular, is highly volatile, so sudden price spikes and drops are not uncommon. However, XM employs a tiered margin maintenance rate, allowing you to automatically adjust to an appropriate trading risk (leverage). As the leverage is automatically limited as the trading volume increases, the trading amount is restricted, allowing you to trade Bitcoin with peace of mind. The leverage limits by trading volume for BTCUSD (Bitcoin/US Dollar), the most popular cryptocurrency with the highest trading volume offered by XM, are as follows:

XM BTCUSD (Bitcoin/US Dollar) Tiered Margin Rates

For BTCUSD, leverage is gradually restricted when the trading lot size exceeds 14 lots . Tiered margin rates are also applied to Bitcoin products other than BTCUSD, and maximum leverage is limited according to trading volume. Please refer to the following page for details.

1. Click here for details on XM Bitcoin tiered margin rates

2. Click here for details on XM’s minimum and maximum lot size (lot calculation method)

You can trade up to 500 times your available funds

Zero cut system prevents negative balance

You can start trading with the bonus

You can trade both “buy” and “sell”

Trading available 24 hours a day, 365 days a year

For details on XM’s weekend trading and deposit/withdrawal rules, click here

You can trade with the same margin as FX trading

For details on XM Bitcoin trading volume leverage limits, click here

Beware of declining margin maintenance rates

XM allows you to trade Bitcoin with small amounts by using high leverage, but please note that the margin maintenance rate is prone to fluctuations. The margin maintenance rate can be calculated using the formula ” Available Margin ÷ Required Margin × 100 ” and is a number that represents the margin available in your account. The higher the margin maintenance rate, the more margin you have available for trading. At XM, if your margin maintenance rate falls below 20%, your position will be forcibly closed (stop loss).

Bitcoin is a highly volatile asset, and it is not uncommon for its price to fluctuate dramatically over a short period of time. When trading with high leverage, the margin maintenance rate is also prone to fluctuation, so it is important to be aware that there is a higher risk of forced liquidation compared to FX trading. When trading Bitcoin with high leverage at XM, please enjoy trading while keeping an eye on the margin maintenance rate.

XM points cannot be earned through Bitcoin trading

XMTrading has a ” Loyalty Program ” where you can earn XM points with every trade , but XM points are not awarded unconditionally. Specifically, XM points are not awarded for trading with the “KIWAMI Account,” which offers extremely small spreads. Also, XM points are not awarded for Bitcoin trading with Standard Accounts or Micro Accounts. If you want to earn XM points, trade with products such as FX currency pairs and stock indexes.

At XM, you cannot earn XM points through Bitcoin trading, but you can trade Bitcoin using bonuses from XM points as margin . However, XM points cannot be transferred to KIWAMI accounts. When using XM points to start trading Bitcoin, please be careful about the account type you open.

Swap points will incur expenses

When trading Bitcoin with XMTrading, swap points are incurred. Swap points are adjustment losses due to the interest rate differential between the combined currencies, and are incurred by holding a position for more than one day. Swap points can be positive depending on the currency pair and the direction of the position (buy or sell), so by making good use of interest rate differentials, it is possible to increase your assets simply by holding a position.

These swap points occur not only in FX but also in Bitcoin trading, and all swap points for XM’s Bitcoin products are negative swaps for both buying and selling . Therefore, it is important to note that if you hold a Bitcoin product with XM for more than one day, swap points will be deducted from your assets. The swap points for the four Bitcoin products that can be traded with XM are as follows:

XM Bitcoin Swap Points

Swap points occur at the rollover time from Monday to Friday (6:00 a.m. Japan time), so when trading Bitcoin, please be careful about the length of time you hold your position.