Complete dictionary of forex and CFD trading terms. Master the language of trading with XM Global and understand every aspect of the financial markets.
Jump to specific trading topics and XM broker information
XM Global is a regulated online forex and CFD broker established in 2009, serving over 15 million traders worldwide. XM offers MetaTrader 4 and MetaTrader 5 platforms with access to 1400+ trading instruments.
The global marketplace for trading national currencies. XM broker provides access to 55+ currency pairs including major, minor, and exotic pairs with competitive spreads.
Popular trading platform offered by XM broker. MT4 features advanced charting, automated trading with Expert Advisors, and comprehensive technical analysis tools.
Advanced trading platform from XM Global with enhanced features including more timeframes, improved strategy tester, and additional order types compared to MT4.
The difference between bid and ask prices. XM broker offers competitive spreads starting from 0.6 pips on major currency pairs, with Ultra Low and Zero account types available.
Trading with borrowed capital to increase potential returns. XM trading provides leverage up to 1:888 for retail clients, subject to regulatory restrictions.
Financial derivative allowing traders to speculate on price movements without owning the underlying asset. XM markets offers CFDs on stocks, indices, commodities, and energies.
The smallest price movement in a currency pair, typically the fourth decimal place. XM broker displays pip values clearly across all trading instruments.
The required deposit to open a leveraged position. XM trading provides detailed margin calculations and negative balance protection for all account types.
Risk management order to close a position at a predetermined loss level. XM platforms support various stop loss types including trailing stops.
Order to close a position at a predetermined profit level. XM broker's platforms allow easy take profit setup for effective trade management.
Interest rate differential charged or credited for holding positions overnight. XM Global provides transparent swap rate information for all trading instruments.
Trading environment where orders are matched electronically. XM broker provides ECN-style execution on Zero accounts with institutional liquidity.
The difference between expected and actual execution price. XM trading minimizes slippage through advanced execution technology and deep liquidity pools.
Automated trading program for MetaTrader platforms. XM broker supports EA trading with Virtual Private Server (VPS) hosting for optimal performance.
Practice trading account with virtual funds. XM Global offers unlimited demo accounts with real market conditions for learning and strategy testing.
Real money trading account. XM broker offers multiple live account types including Micro, Standard, Ultra Low, and Zero accounts with different features.
Legal oversight by financial authorities. XM Global is regulated by CySEC, ASIC, and FCA, ensuring client fund protection and regulatory compliance.
Client funds kept separate from broker's operational funds. XM broker maintains strict segregation with tier-1 banks for maximum client protection.
Safety feature preventing account balance from going below zero. XM trading provides NBP on all account types, protecting clients from market volatility.
Now that you understand the key trading terms, open your XM Global account and start your forex trading journey with one of the world's most trusted brokers.
This forex glossary is regularly updated to include the latest trading terms and XM broker features. Last updated: 9/18/2025