7 minute read
How to Change Leverage on XM
In the high-octane world of forex and CFD trading, leverage is not just a tool — it's a weapon. But like any powerful weapon, it must be handled with care, intelligence, and discipline. Whether you're new to XM or a seasoned trader refining your strategy, understanding how to change leverage on XM is a skill that separates amateurs from professionals.
Changing your leverage on XM can impact your margin requirements, risk exposure, trade volume, and profitability. It’s not just a technical step — it’s a strategic decision. In this article, you’ll learn not only how to change leverage on XM but also when, why, and how to use leverage properly.
🏅 3 Best Forex Brokers
1️⃣ Exness: Open Account Trading | Go to broker
2️⃣ XM: Open Account Trading | Go to broker
3️⃣ JustMarkets: Open Account Trading | Go to broker
💡 What Is Leverage on XM?
Leverage on XM enables traders to control a larger position than what their account balance would normally allow. This means you can open trades that are multiples of your equity, amplifying both potential gains and potential losses.
📌 Example:
With 1:500 leverage, $100 in your account allows you to control a $50,000 trade.
With 1:30 leverage, that same $100 would only allow a $3,000 trade.
XM provides various leverage options ranging from 1:1 to 1:1000, depending on the account type, instrument, and regulatory region.
🛑 Important Note: Traders under certain jurisdictions like the European Union, UK, or Australia are restricted by local regulators to maximum 1:30 leverage for retail clients. Traders under offshore entities (like XM Global) can access up to 1:1000.
🛠️ How to Change Leverage on XM: Step-by-Step Guide
Changing leverage on XM is done via their Secure Members Area, not the MT4 or MT5 platform. Here’s how you do it with precision:
✅ Step 1: Log In to XM Members Area
🔐 Go to the XM website and enter your MT4/MT5 ID and password. This gives you access to your live or demo trading accounts.
✅ Step 2: Select the Trading Account
You’ll see a list of your accounts. Choose the one for which you wish to change the leverage. Ensure that no trades are open during the leverage modification process to avoid forced liquidation or system errors.
✅ Step 3: Click “Change Leverage”
🛎️ You'll find this option next to your account details. Click it to open the leverage adjustment interface.
✅ Step 4: Choose Your Desired Leverage
XM offers flexible leverage levels such as:
1:1
1:50
1:100
1:200
1:400
1:500
1:888 or 1:1000 (depending on your region)
⚠️ Choose leverage carefully. Don’t pick the highest just because it’s available. Pick what fits your risk profile, capital, and strategy.
✅ Step 5: Confirm the Change
Review your selection and click Confirm. The new leverage takes effect almost immediately. You’ll receive a confirmation email or notification within the portal.
🧠 Strategic Reasons to Change Leverage
You shouldn’t just change leverage because you can. You should change it because it serves a purpose. Here’s why pro traders adjust leverage:
🔽 Lower Leverage When:
You’re trading large positions and want to limit risk.
You’re shifting to a conservative strategy like long-term swing trading.
Market conditions are highly volatile (e.g., during NFP or central bank news).
You’re transitioning from demo to live and want to protect capital.
🔼 Increase Leverage When:
You’ve mastered your strategy and want to scale it.
You want more margin flexibility for hedging multiple pairs.
You’re day trading with tight stop-losses.
You need to trade small balances with greater exposure — but with strict risk management.
⚖️ How Leverage Affects Margin, Risk, and Exposure
Changing leverage on XM has real financial consequences. Here’s how it affects your trading metrics:
📉 Margin Requirement
Leverage directly impacts the margin you need to open and maintain positions.
Higher leverage = lower margin per trade.
Lower leverage = higher margin per trade.
📌 A $100,000 position at:
1:100 leverage = $1,000 margin
1:500 leverage = $200 margin
1:30 leverage = $3,333 margin
💣 Stop-Out and Margin Call
The higher your leverage, the closer you are to a stop-out, especially if you're not using stop-losses. XM has a margin call level at 50% and stop-out level at 20% for most accounts.
Changing leverage improperly without adjusting position size could lead to unexpected margin calls.
🧪 Risk Management Tips When Using Leverage
Leverage is like nitro in a race car — it’s explosive but dangerous without control. Here are powerful tips to manage it smartly:
🛡️ Always Use Stop-LossesNo trade should be without a predetermined exit level.
📊 Risk Only 1-2% of Capital Per TradeLeverage allows big positions, but you only want to risk small parts of your capital.
🔢 Adjust Lot Size Based on New LeverageChanging leverage means recalculating position sizes. Use XM’s calculator or manual formulas.
📈 Backtest Your Strategy at Different Leverage LevelsA winning strategy at 1:50 may collapse at 1:500 due to emotional or volatility stress.
🧯 Never Chase Losses by Increasing LeverageThat’s the fastest way to margin calls. Stick to discipline, not desperation.
🏁 Real-World Example: Leverage Change Impact
Let’s say you’re trading EUR/USD with $1,000 capital.
At 1:30 leverage, you can open ~$30,000 in trades.
At 1:500 leverage, you can open ~$500,000 in trades.
💥 Problem: A 1% move against your position at 1:500 could lose you 50%+ of your account if unhedged.
🔒 Solution: Even with high leverage, only use as much as needed for your calculated risk.
📍 Things to Know Before Changing Leverage on XM
🧾 Account Approval Required: Some leverage options may be unavailable unless your account is fully verified.
🧭 Regional Regulations Apply: XM operates under different regulatory frameworks — EU, ASIC, IFSC (Belize), etc.
🔐 Professional Account Options: Under some regulators, you can apply for a professional client account to access higher leverage.
📆 No Open Trades During Leverage Change: Always close all positions before submitting a leverage change request.
⚙️ Reapply After Account Reset: If you change account type or create a new account, you’ll need to reset your leverage settings.
🧭 When to Avoid High Leverage
📉 During unpredictable news releases📉 When trading large lots on a small account📉 When you’re emotionally compromised📉 When testing new strategies or indicators📉 When volatility spikes and spreads widen
A good trader survives first, profits second. Avoid treating leverage like a gambling tool.
🛡️ Leverage vs Capital: The Smart Trader’s Mindset
💼 A true professional doesn’t ask: How much can I gain with leverage?Instead, they ask: How much risk can I control with leverage?
Here’s a mental model:
Capital is your ammo.
Leverage is your scope.
Risk management is your armor.
Use all three correctly, and you're in the elite 5% of consistently profitable traders.
Read more:
🧘 Final Thoughts: Leverage Is Your Trading Discipline Revealed
The option to change leverage on XM isn’t just about flexibility. It’s a mirror that reflects your risk psychology, discipline, and understanding of market mechanics.
🧠 Change your leverage — not based on emotion, but based on strategy.💡 Learn from every position — not just the wins, but the losses tied to over-leveraging.📈 Master your tools — leverage included — and the market will become a battlefield where you thrive, not survive.
