As one of the award-winning brokers, XM offers different types of trading products for various types of traders, this article will introduce you in detail。

Forex Trading

Foreign exchange trading, also known as currency trading, refers to the exchange of currencies by individuals, companies and financial institutions at floating interest rates in a globally dispersed market, and the current floating exchange rate system was adopted after the Second World War and has been in effect.。

The foreign exchange market is the most liquid and volatile market in the world today, with more than $5 trillion traded every day.。Among the major players in the forex trading market, one of the biggest growth segments of the forex trading market is retail forex traders (individuals), whose main reason for participating in online forex trading is speculation, with the ultimate goal of generating profits through currency fluctuations (market changes), or hedging against unnecessary currency risk。

Factors influencing the price

The daily price of foreign exchange transactions (for example, currency exchange rates) is affected by many factors, but there are six main factors:

1. Difference in Inflation
2. Differences in interest rates
3. Negative value of current account funds
4. Public debt
5. Trading Conditions
6. political and economic stability

In addition, given that foreign exchange transactions are mutual, when one party falls, the other party will rise, because the price of any currency is always against the other。

Currency pair type

Straight currency pairs (mainstream currency pairs): mainstream currency pairs must have one party in the U.S. dollar, common mainstream currency pairs include EURUSD, USDJPY, GBPUSD, USDCHF, USDCAD, NZDUSD。

Forked currency pairs: All currency pairs that do not contain the U.S. dollar are cross-plate currency pairs.。

Supercars: currency pairs that are less traded, such as those of smaller or emerging economies paired with mainstream currencies, are generally less traded than mainstream currency pairs and therefore have greater volatility and less liquidity。

important factors

As a retail foreign exchange trader, the most important factors are the execution quality, speed and spread of the transaction, and they all affect each other。

The spread is the difference between the bid price and the ask price (buy or sell price) of a currency pair, i.e. the price at which the broker or bank is willing to sell or buy the trade order you need.。However, the spread is only relevant to the correct execution of the order。

In the forex trading market, execution refers to the execution speed at which forex traders actually buy or sell the goods they see on the screen or on their phones.。A good price doesn't make sense if your bank or broker can't execute for you in time at the price you see。

Advantages of XM

Trading Forex in XM has several advantages:

• 50 + currency pairs, including all mainstream currency pairs, cross-currency pairs and non-mainstream currency pairs (supercars)
• 24 hours a day, 5 days a week
• Leverage up to 1: 1000
• Ultra Low Ultra Low Spread Account - No Overnight Interest
• Extremely low spreads, no repeat quotes
• No stealth fees

Turbo Stocks

Trading time

Turbo stock is a CFD commodity for designated stocks with a leverage of 200: 1。You can trade Turbo stock commodities at any time when the trading market opens and close your position on the same day when the market closes, repeating the process the next day.。All open positions will be automatically closed at the last trading price when the trading market is closed.。

Transaction costs

At XM, trading Turbo shares is not subject to overnight interest or other fees, only the corresponding spread.。

Margin Calculation

The margin ratio will be calculated as the minimum value between the account and the traded commodity:

Margin = (lots * contract size * opening price) / (lowest value between account leverage and commodity leverage)

where the leverage of the position will be your account leverage and commodity-specific leverage, with the lowest of the two。

Advantages of XM

• Trading leverage 200: 1

• The hottest stocks in the optional market

• Take advantage of intraday volatility to profit

• Profiting from market long / short trends

• enjoy very low spreads

• No other additional costs

Commodities

The commodity market, like the global exchange rate market, provides a variety of investment opportunities for retailers in the global trading market.。Soft commodities such as sugar, wheat and corn have been traded for centuries, and investors' preference for these derivatives is due to their important role in diversification and risk management。

Investing in contracted goods can largely mitigate risk, even in times of inflation or economic uncertainty, ensuring that buyers and sellers of contracts are not exposed to drastic price fluctuations and losses。

Margin Calculation

The margin calculation formula for CFDs is: lot size * contract size * opening price * margin ratio, rather than leverage based on your real account.。If you trade in the same direction, the advance payment ratio needs to be higher than 100%, and if you trade with a CFD lock position, only 50% of the margin is required.。

Please set the minimum stop loss and gain points for pending orders based on the current market price.。After the expiration of a futures contract, the platform will not automatically extend the contract for the customer.。

Advantages of XM

• Trading on a contractual basis without actually holding any financial instruments
• Connect with the global economy anytime, anywhere
• Speculative trading based on future boom / bust market price movements
• Ideal for beginner traders with low income
• Can be bearish and profit from it
• No securities transaction fees

securities index

A well-known stock index or stock index is an actual stock market index and a measure of the value of a particular part of the stock market。They are calculated based on the weighted average of the prices of selected stocks, which fall into the actual category they represent。

The purpose of an index is to show the general economic direction of a particular stock market or a country。However, since stock indices are made up of many companies, they can be heavily influenced by a particular company's decisions or a particular industry。

In most cases, the stock index represents the overall situation of a particular stock market.。In most cases, the basket of stocks represented by the index consists of the most influential (largest market capitalization) companies in the market.。

Major Global Stock Indices

S & P 500 (US500): The S & P 500 (US500) Stock Market Index is a 1957 S & P Financial Services。It is a leading indicator of U.S. stock indices and one of the most commonly used benchmarks for measuring the overall performance of the U.S. stock market, accounting for about 75% of the U.S. stock market through capitalization.。

ASX200 (Australia200): The ASX 200 (AUS200) index is listed as a market capitalization-weighted stock on the Australian Stock Exchange and belongs to the world's 15 largest groups with an average daily turnover of 46.8.5 billion。The index contains shares listed on the Australian Stock Exchange。

Nikkei 225 (JP225): Nikkei 225 (JP225), also known as the Nikkei, has a market cap value of $4.09 trillion shares of the world's third largest stock exchange, the Tokyo Stock Exchange。

HSI (HK50): HSI (HK50), the Hang Seng Index is a market capitalization-weighted stock market index that has recorded the daily changes of the 50 largest companies since 1969, and the Hong Kong Stock Exchange (HKEx) is known as the second largest stock exchange in Asia (and the sixth largest in the world).。

FTSE 100 (UK100): The FTSE 100 (UK100) index is part of the London FTSE 100 index and contains the 100 most valuable companies listed on the London Stock Exchange.。

NASDAQ 100 (US100): The NASDAQ Nasdaq Index is primarily the NASDAQ Composite Index and the NASDAQ 100 Index (US100), containing shares issued by 107 of the most powerful non-financial companies listed on the NASDAQ Stock Exchange.。

DJIA (US30): DJIA (US30) is the second largest stock index in history after the U.S. Dow Jones Transportation Average, showing the stock performance of 30 major U.S. companies during the standard trading hours of the stock market.。It is calculated as the sum of the prices of the 30 companies included in the Dow Jones Industrial Average.。

DAX (GER40): DAX (GER40), is a German stock index, the main German stock market index, representing the 40 major companies listed on the Frankfurt Stock Exchange.。It is considered a blue chip index in terms of quality and profitability.。

CAC 40 (FRA40): The French benchmark stock market index CAC 40 (FRA40) belongs to the Paris Stock Exchange and represents the second largest exchange in Europe.。This index is calculated from the top 40 stocks of the 100 highest market capitalization companies in the French securities market.。

calculation method

The weight of each constituent in a stock index varies from stock index to stock index, which means that each stock index is calculated differently.。Price weights and market capitalization weights are the two main methods of calculating component equity weights, for example.

• Dow Jones (US30) and Nikkei 225 (Japan225) are price-weighted indices。
• FTSE 100 (UK 100), ASX200 (Australia 200), Hang Seng Index (Hong Kong 50), DAX (Germany 30), CAC 40 (France 40) and IBEX35 (Spain 35) are some of the major market capitalization-weighted indices。

Trading Methods

On each trading day, the price of the company's individual stocks will rise or fall。Since a stock index is made up of a specific series of constituent stocks, a rise or fall in the price of an individual stock will affect the change in the stock index。

Here are a few key points to master when trading stock indices.

• All stock index components are constantly adjusted and may be replaced by other stocks if the overall performance of these components is not representative。In other words, the composition of each stock index is not static.。
• The impact of individual stocks on the stock index depends on the calculation and rules of the stock index.。In a basket of stocks, not every stock has the same weight。Simply put, the price of a stock index is not simply adding up the prices of individual stocks and dividing by the number of individual stocks。
• The stock index shows general consensus and can be considered as a benchmark for the overall stock market with historical value。
• Each stock has a different position in the stock index, and some stocks of companies with larger market capitalizations will be given higher weights。This means that when the share price of a company with a market capitalization of up to falls for some reason, the price of the stock index falls even if the prices of other stocks do not fall.。
• A basket of stocks that make up a stock index changes over time。As a result, the basket of stocks represented by the stock index is not static over a given period of time。

Advantages of XM

• Cost-effectiveness and integration with global securities markets
• Instantly connect to the global economy
• Speculative profit based on market up / down trend
• Trading leverage up to 500: 1
• Portfolio diversification
• No extra charge

Precious metal

Gold and other precious metals, crude oil, copper, gasoline and other commodities occupy an important position in the commodity market.。All are contract traded commodities.。Contracts for precious metals include futures, spot, forwards and options.。

The intermediary for trading futures contracts is the futures exchange or futures market.。Traders from all over the world can trade about 50 major commodities, hesitating that they have extremely high economic value and durability, gold, silver, platinum, palladium, etc. are the main trading assets。Asia is the world's largest precious metals trading market (China, India, Singapore as the main traders), commodity trading is mostly dominated by European and American companies.。The largest precious metals companies in Canada and Germany。

Trading spread

	Standard Account	Micro Account	Ultra Low Standard Account	Ultra Low Micro Account
Gold	3.7	3.7	1.6	1.6
SILVER	4.3	4.3	2	2

Margin Calculation

The margin demand for gold and silver is calculated as follows: lots * contract size * market price / leverage。Silver has a leverage limit of 400: 1 across all account types。Set the minimum stop loss and gain points for pending orders based on the current market price.。

If you have a position held overnight, you will pay or receive an amount of interest between the two currency pairs, i.e. overnight interest.。Inside the trading software, overnight interest is automatically converted into your credit-to-account currency (account currency)。

system at 00 every day.00 (GMT + 2 time zone, please note that it may be daylight saving time) for calculation, the whole process may take several minutes。From Wednesday to Thursday is charged three times the overnight interest。

Gold & Silver Trading Hours

• Monday to Thursday: 01: 05 - 23: 55
• Friday: 01: 05 - 23: 50

Advantages of XM

• Online gold and silver trading, no duplicate quotes
• Quality investments other than foreign exchange
• Ultra Low Ultra Low Spread Account - No Overnight Interest
• The same account operates long / short.
• Leverage up to 1000: 1
• Zero transaction fee

Energy

Transaction characteristics

The most typical feature of energy prices is high volatility, which is the result of political and environmental factors.。Many supply and demand factors also affect energy prices, with global economic growth being the most influential.。When the economy is booming, energy demand increases; when the economy is depressed, energy consumption decreases。

In addition to economic changes, disaster weather conditions can also have a huge impact on energy, causing the supply of crude oil, natural gas or oil to collapse。Therefore, such conditions can increase or decrease the need for customer service related to these energies。In addition, in some of the world's largest natural gas fields, global energy prices are heavily influenced by political instability.。

Oil has a global, 24-hour market, and its prices are constantly changing.。The oil market is an ideal tool for day traders looking for quick moves and choosing CFDs as the easiest way to trade oil prices。

Advantages of XM

• High volatility - greater price volatility
• Oil deals - the world's most competitive commodity to trade
• Long / Short according to market trend
• Minimum trading margin of $5
• No Overnight Interest on Oil CFDs
• No additional cost

Stock

Transaction Fee

XM sets different fee standards for transactions by country, depending on the characteristics of the stock market in different countries.

U.S. STOCKS: $1 minimum, $0 fee increase for each additional share.04。

UK stocks: $9 minimum, 0 increase in fees for each additional order.10%。

German shares: minimum $5, 0 for each additional fee.10%。

Please note that on the third Friday of each month, the UK stock market will be closed from 12: 10 to 12: 16 (GMT + 2 time zone) on the platform (daylight saving time also applies).。

Dividend adjustment

Individual stocks will be affected by dividend adjustments。When a company pays dividends to its shareholders, it essentially reduces the value of the company through the dividends paid。This is reflected on the ex-dividend date (i.e., the date on which the company opens trading after deducting the value of the dividend), when the company's share price falls when the market opens trading。If the stock you hold pays a dividend, you will receive a tax-deductible dividend on the ex-dividend date。Dividend tax rates are as follows:

• Germany: 25%
• UK: 0% (i.e., dividends are tax-free)
• United States: 30%

where long positions will receive dividends according to the following formula: dividend adjustment = dividends distributed x individual stock position size x (1 - tax rate)

Conclusion

In summary, XM offers different tradable products for various types of traders, making it easy to choose on demand.。Before trading, please consider carefully, carefully research the market of trading products is conducive to the success of the transaction, to achieve the purpose of profit.。