XM Turbo Stocks is a great instrument choice for Day Trader. In addition to that, this product also offers various other benefits as well.
There are various trading instruments you can choose from in the market. Some broker even offers unique instruments that might be interesting to try. One of the best examples is XM Turbo Stocks.
The XM Turbo Stocks are CFD products with specific individual stocks as their underlying assets and leverage of 1:200. The trading commences at the beginning of the underlying stock's trading day and concludes at the end of the same day.
That being said, what else should you know about this particular feature?
XM Turbo Stocks, a Distinct CFD Product
The XM Turbo Stocks have introduced a distinguished trading concept through CFD (Contract for Difference) products that are tied to specific individual stocks, offering the option to leverage their positions at an impressive leverage of 1:200. Why impressive? Because it's almost impossible to trade individual stocks with that high of leverage in the traditional capital market.
Here are the asset choices you could trade with XM Turbo Stocks:
|Symbol with Description||MT5 Symbol||Spread as low as (quote currency)||Min/Max Trade Size||Margin Percentage||Limit and Stop Levels|
As mentioned, Turbo Stocks trading starts when regular stock trading begins for the day and ends when it's time for the regular stock market to close. This makes sure each time you trade matches how the regular stock moves during the day. This pattern starts again the next trading day so that you can return to join the market activity.
For better understanding about the stock market time, here is a list of Trading Hours you can use as a guidance.
|Symbol||Description||MT4 / MT5 Server Time||Weekday||Monday Open||Friday Closed|
|Adidas_turbo||Adidas||GMT 3||10:10 - 14:00,14:03 - 18:25||10:10||18:25|
|Amazon_turbo||Amazon||GMT 3||16:40 - 22:55||16:40||22:55|
|Apple_turbo||Apple||GMT 3||16:40 - 22:55||16:40||22:55|
|BP_turbo||BP||GMT 3||10:10 - 14:00,14:03 - 18:25||10:10||18:25|
|Facebook_turbo||GMT 3||16:40 - 22:55||16:40||22:55|
|Google_turbo||GMT 3||16:40 - 22:55||16:40||22:55|
|Microsoft_turbo||Microsoft||GMT 3||16:40 - 22:55||16:40||22:55|
This way of trading is good for those who like the fast pace of the stock market and prefer to make money in a shorter time. You might be able to take advantage of the quick price changes in just one day of trading in XM.
Established in 2009, XM is a member of an online brokerage company called Trading Point of Financial Instruments Ltd. In providing clients on a global scale, the company has branched into XM Australia and XM Global, and XM Cyprus. Each member has different headquarters and licenses, with XM Australia registered under the Australian Securities and Investment Commission (reference number: 443670), XM Global under the IFSC (60/354/TS/19), and XM Cyprus under the Cyprus Securities and Exchange Commission (reference number: 120/10).
XM is one of the more experienced brokers in the world of online forex trading today. Since its founding, the broker has experienced a lot of changes, including the addition of the Ultra-Low Account and Webinar feature that is accommodated in 19 different languages with 35 native instructors for each language.
In terms of trading instruments, XM is a well-known diverse class assets provider, varying from Forex, Commodities, Equity Indices in CFDs, Precious Metals, Energies, to Shares. XM prides itself to be the ideal broker in trading execution, offering a stat of 99.35% orders to be executed in less than 1 second. Trading in XM would be also provided with a strict no requotes policy, no virtual dealer plug-in, no rejection of orders, real-time market execution, and the choice for traders to place orders online or by phone.
Spreads on all majors can reach as low as 0.6 pips in Ultra-Low Account, while spreads on other accounts usually start from 1 pip. Instead of providing maximum leverage on the scale of 1:500 or 1:1000 (round numbers), XM chooses to limit their leverage on a 1:888 scale, a unique number that is now widely recognized as XM's trademark.
To protect the client's fund in the event of extreme volatility, XM presents each account type with Negative Balance Protection. The deposit starts from $5 in Micro and Standard Account, while Ultra-Low Account requires a minimum deposit of $50. Traders who open accounts in XM are enabled a condition similar to a Cent Account environment in the Micro Account, in which the Contract Size for every lot is only 1,000 units. If it is applied with the smallest lot size in the MetaTrader platform which amounts to 0.01, it means that traders can go as small as 10 units per trade.
For the deposit, XM applies zero-fee deposits in most of its available payment methods. Traders can choose to fund or withdraw their accounts via wire transfer, credit card, as well as the most favorable e-payment choices like Skrill, Neteller, and FasaPay.
XM also provides an Islamic Account for Muslim Traders obligated to Sharia Law that prohibits the use of interest generated by overnight swaps for each currency pairs. To give their clients the best experiment in trading, XM has given access to both MT4 and MT5 platforms, each is available for more than 6 display formats (PC, Mac, Multiterminal, WebTrader, iPad, iPhone, Android, and Android Tablet).
All in all, there is no doubt that XM has gone global with its deep commitment to providing trading services in more than 15 languages around the world. Aside from easing traders' experience with mainstream trading platforms and high-quality trading execution, XM is open to various types of traders, from small capital traders to the more experienced ones with big deposits at the ready. Traders are even provided with a Cent Trading environment should they choose to register under Micro Account.
For their global approach, XM has ensured that traders from various countries could access their service easily. This results in the provision of different domains specified for traders in certain jurisdictions. For example, traders from Indonesia could access XM via this link.
Advantages of Trading XM Turbo Stocks
Engaging in Turbo Stocks trading through XM broker opens the door to many advantages that can significantly enrich your overall trading journey and potentially uplift your market results.
These advantages extend beyond just the mechanics of trading.
- Leverage Opportunities: XM Turbo Stocks provide the potential to leverage your trades up to 1:200, allowing you to amplify your exposure to the market and potentially increase your returns.
- Best for Day Trading: Turbo Stocks are designed to match the pace of Day Trading market movements, offering opportunities to profit from quick price changes within the trading day.
- Adaptability to Market Trends: Whether the market is rising or falling, Turbo Stocks enable you to speculate on both uptrends and downtrends, adapting your strategies to different market conditions.
- Cost Efficiency: Enjoy the advantage of potentially lower spreads, optimizing your trading efficiency, and helping to manage trading costs.
- No Hidden Fees: Trading XM Turbo Stocks comes without the burden of extra fees, providing a transparent trading experience without unexpected costs.
- No Long-Term Commitment: Turbo Stocks are traded within a single trading day, allowing you to engage with the market without the commitment of holding positions overnight.
- Practical Learning: The fast-paced nature of Turbo Stocks trading in XM can provide a valuable learning experience for traders aiming to improve their skills in dynamic market conditions.
- Diverse Stock Selection: You can choose from a carefully curated range of popular stocks, allowing you to trade companies that align with your interests and market outlook.
How to Trade XM Turbo Stocks
Trading with XM Turbo Stocks doesn't require specific conditions. All traders could trade these instruments with the following stops:
- Open an Account: If you're not already an XM client, you must open a trading account with XM. Make sure to choose the XM MT5 Standard Account as Turbo Stocks are only available there.
- Research and Education: Before you start trading, it's essential to understand the basics of Turbo Stocks and how they work. XM typically provides educational resources, tutorials, and materials to help you grasp the concept and trading mechanics.
- Access the Trading Platform: Log in to your XM trading account and access your MT5 platform.
- Select Turbo Stocks: Within the trading platform, navigate to the section where you can trade Turbo Stocks. You'll likely find a list of available Turbo Stocks and their corresponding leverage ratios.
- Choose a Stock: Select the Turbo Stock you want to trade. When selecting, consider factors like the company's performance, news, and market analysis.
How to Calculate XM Turbo Stocks Margin
Considering XM Turbo Stocks is a leveraged product, it is safe to say that it also comes with a margin requirement. Because of this, you must know how to calculate the margin.
The Margin Requirement for Turbo Stock CFDs is calculated using this formula:
[Lots x contract size x opening price] / [The smaller number between (Your Account Leverage, Symbol Leverage)]
This formula shows that the leverage you can use for your trade is decided by whichever is smaller: the leverage of your account or the specific leverage allowed for the stock you're trading.
Let's say a client buys 10 lots of Turbo Amazon CFD at an opening price of $100. The account uses USD as its base currency and has an account leverage of 1:100. Meanwhile, the symbol leverage for Turbo Amazon CFD is 200.
The required margin for this Turbo Amazon CFD position would be (10 x 10 x 100) / 100 = $100.
Imagine a different scenario where a client purchases 15 lots of Turbo Amazon CFD at a $100 opening price. The account has USD as its base currency, account leverage of 1:500, and a symbol leverage for Turbo Amazon CFD at 200.
In this case, the necessary margin for the Turbo Amazon CFD position would be (15 x 10 x 100) / 200 = $75.
This calculation ensures that the amount of money required to hold the trade is based on your account's leverage and the specific leverage set for the particular stock you're trading.
FAQ on XM Turbo Stocks
- When can you trade XM Turbo Stocks?
You can open and close positions anytime during trading days (refer to the Trading Hours table for more information).
- How much does it cost?
You won't need to pay a swap or commission. The only fee you will pay is spreads.
- When will your Turbo Stocks position close?
All open positions will be closed at the end of the trading session at the last price available.
- What is the maximum leverage?
The maximum leverage for XM Turbo Stocks is 1:200.
- Can you receive dividends?
No, you can't. The positions are closed daily so you won't be able to receive dividends.
- What platforms can you trade XM Turbo Stocks?
This instrument is available on the MT5 platform.
- On which account type can you trade XM Turbo Stocks?
This instrument is available on the XM Standard account.
- How is the margin calculated?
The margin rate will be calculated at the lowest between your account and the instrument traded.
XM broker is an established international firm and has become a true leader in the trading industry. Founded in 2009, the company works with the main principle of being "fair, trustworthy, and dependable". XM claims to support no re-quotes and real-time execution, where traders can choose from 10 trading platforms suitable to any device.