XM Stop Level | Conditions for Scalping, Stop/Limit Orders

I will explain the stop level of XM.

If the stop level is too wide, it will be disadvantageous for traders who aim for profit with small price movements such as scalping.

Stop level is an important factor in forex trading, so please learn about stop level carefully in this article.

What is Stop Level

The stop level is the minimum from the current price when placing a limit order or stop order, or when setting a stop loss or take profit at the same time as the order.

It is a price range constraint that indicates how far you must be.


For example, suppose you are trading USDJPY and the current price is 105.00.

Assuming that the stop level is 5.0 pips, the take profit setting must be 5.0 pips or higher, that is, 105.051 or higher when placing a buy order.

In other words, you cannot place an order at a price below 105.50.

This is the same to limit / stop limit orders.

The stop level is uniquely defined by each forex broker, it depends on which broker you use.

Should the stop level be wide or narrow?

It is advantageous to have a narrow stop level rather than a wide one.

For example, we may set additional stop loss or take profit settings for an order that has already been entered, or change the settings.

This is the case when you have an unrealized loss, or when the unrealized profit swells and you are confident that the profit will be fixed to some extent.

Especially when you have an unrealized loss and fortunately the price is returning, you can eliminate the loss if you can close at least at the quoted price (entry price), but if the stop level is wide, you have to close position with loss at a distance from the quoted price, or you have to wait until your position turns positive and you have unrealized gains.

The narrower the stop level, the more advantageous it is because it can be set freely.

Is the stop level of XM wide or narrow?

The stop level of XM is zero (0.0 pips).

Therefore, XM is very suitable for scalping trading.

In fact, until now, XM’s stop level has been quite wide.
However, with the major update on August 2021, the stop level for all account types and all products has been reduced to zero.

This is a very big update.
I think this makes XM an attractive enough forex trader not only for beginners but also for intermediate to advanced traders.

XM’s major currencies, product stop levels

Stop levels for major currency pairs (EURUSD, USDJPY, GBPUSD) and gold (XAUUSD) in XM.

The same stop level is used for all account types.

As you can see, the stop levels used to be very wide.

Symbols	-Standard -Micro	-Swap Free Standard –Swap Free Micro	-Ultra Low Standard –Ultra Low Micro
EURUSD	0.0 pips (Used to be 4.0pips)	0.0 pips (Used to be 4.0pips)	0.0 pips (Used to be 1.2pips)
USDJPY	0.0 pips (Used to be 4.0pips)	0.0 pips (Used to be 4.0pips)	0.0 pips (Used to be 1.2pips)
GBPUSD	0.0 pips (Used to be 5.2pips)	0.0 pips (Used to be 5.2pips)	0.0 pips (Used to be 1.7pips)
XAUUSD	0.0 pips (Used to be 10.0pips)	0.0 pips (Used to be 10.0pips)	0.0 pips (Used to be 5.0pips)

What to do if the stop level is wide

A wide stop level means that you can only set a limit far away, so if you want to close a position near the ordered price, you will have to manually close it.

It doesn’t matter if you have enough unrealized gains beyond the stop level.

How to check stop levels of XM

There are two ways to check the stop level of XM, one is to check on the official website and the other is to check with the trading tools, MetaTrader (MT4, MT5).

Check stop levels on XM website

Visit XM official website, select “TRADING” – “INSTRUMENTS”.

You can find “Limit and Stop Levels” in each row.

To convert the stop level to pips, multiply this stop level by the Minimum Price Fluctuation.

Check stop levels on MetaTrader (MT4, MT5)

From MT4 and MT5, you can check as follows.

MT4,MT5 desktop edition

From the Market Watch area, select the currency pair you want to check the stop level, right-click and select “Specifications”.

The image below is MT4, but it is almost the same as MT5.

You can find “Stops level” in the contract specification window.

MT4, MT5 mobile app

From the Quotes menu, tap the currency pair etc. for which you want to check the stop level and select “Details”.

The image below is MT4, but it is almost the same as MT5.

Are there any other Forex Brokers with zero stop levels?

There are other forex brokers with zero stop levels.

The following is a list of forex brokers with zero or very narrow stop levels.

Please note that among these, iFOREX prohibits scalping.

	XM	FBS	TitanFX	Axiory	Tradeview	iFOREX	TMGM
Stop Levels	0.0 pips	0.1 pips	0.0 pips	0.0 pips	0.0 pips	0.0 pips	0.0 pips
Scalping	✔	✔	✔	✔	✔	×	✔

Summary

I explained XM stop levels.

XM has zero stop levels for all account types and all products.

There are no restrictions on limit and stop prices.
Scalping is also not prohibited, so please make good use of the zero stop level and accumulate profits steadily.

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