XM allows trading in three main types of foreign exchange pairs: USD direct pairs, JPY cross pairs, and EUR cross pairs.
Common varieties include EURUSD, USDJPY, GBPUSD, AUDUSD, NZDUSD, USDCHF, there are also GBPJPY, EURJPY, EURGBP, EURCHF.
Forex beginners shouldn't immediately focus on dozens of currency pairs. What they should really look at first is: Are the products mainstream enough? Are the spreads high enough? Can you withstand the volatility?
I would suggest watching first EURUSD, USDJPY, GBPUSDLet's start with these varieties. Spread, volatility, stop loss and position sizingUnderstanding this is much more practical than exchanging several currency pairs in a single day.
Which currency pairs can be traded on XM?
XM forex currency pairs can be understood in the following three categories:
| Classification | currency pairs |
|---|---|
| USD Direct Exchange Rate | EURUSD, GBPUSD, AUDUSD, NZDUSD, USDJPY, USDCHF |
| Japanese Yen Crosses | GBPJPY, EURJPY |
| European crossover | EURGBP, EURCHF |
For ordinary traders,These varieties are sufficient.
EURUSD, USDJPY, and GBPUSD are the three most worthwhile currencies to look at first.
AUDUSD and NZDUSD are also common, but beginners don't need to use them all at the beginning. GBPJPY and EURJPY fluctuate more, so they are suitable for observation first, but not for random practice.
Foreign exchange trading is not about knowing more instruments to become more professional. Being able to become familiar with one or two mainstream varieties makes it easier to develop your own rhythm.
How do XM compare spreads and leverage for major currency pairs?
When looking at XM currency pairs, I don't just look at "whether it's tradable." Three data points truly impact the order placement experience: Average spread, lowest spread, maximum leverage.
The average spread is the most important.
If you're trading mainstream currency pairs like EURUSD, USDJPY, and GBPUSD, the spread difference might not be noticeable if you only place one order occasionally. However, if you frequently engage in short-term trading, making several trades a day...The spread is a real cost.
You can refer to the low spreads, but don't focus on them alone.
In actual trading, spreads fluctuate depending on trading hours, market liquidity, and major data releases. Beginners should pay particular attention to... Average spreadBecause it is closer to the daily trading experience.
The maximum leverage value should not be recorded as just one highest value.
Many people see the high leverage in forex markets and assume all currency pairs are the same. This idea is prone to problems. Different currency pairs may have different maximum leverage ratios, and the required margin will vary accordingly.
This table highlights three key points:
First, look at the average spreads of EURUSD, USDJPY, and GBPUSD.
These three are the instruments most commonly used by beginners to observe the market. If the average spread of Ultra Low Standard is significantly lower than that of Standard, those who frequently engage in short-term trading will feel the difference more keenly.
Second, look at the spreads of GBPJPY and EURJPY.
These types of yen cross rates are more volatile and typically have higher spreads. They are not off-limits, but you can't just look at them because of their "high leverage and many opportunities." With a large position, unrealized losses can come very quickly.
Third, look at the maximum leverage of USDCHF and EURCHF.
Swiss franc-related currency pairs require separate trading conditions. Before trading, confirm the maximum leverage and margin requirements. Avoid the habit of directly trading EURUSD or USDJPY.
When I look at these kinds of charts, I usually filter out the varieties that I'm not familiar with first.
Beginners should first look at EURUSD and USDJPY, and then observe GBPUSD. GBPJPY can be considered later. Wait until you know the maximum loss per trade and where to place your stop-loss before considering it.
Which of these currency pairs should beginners look at first?
EURUSD and USDJPY are more suitable for first getting familiar with the trading rhythm.
For beginners looking at XM forex products, I would first show them... EURUSD and USDJPY.
EURUSD is suitable for practicing basic movements.
For example, when to enter the market, where to place the stop loss, whether to move the stop loss after the price moves, and whether the spread changes before and after the US session. When you first start trading forex, you don't need to switch instruments every day. Understanding the rhythm of EURUSD can help you avoid many basic mistakes.
USDJPY is also worth checking out.
It's mainstream, its quotes are active, and its price movements are relatively easy to observe. However, when trading USD/JPY, you can't completely ignore news. US CPI, non-farm payrolls, interest rate decisions, and news from the Bank of Japan can all cause it to fluctuate more significantly in the short term.
Therefore, my suggestion is:Start with a small position, observe the market rhythm, and then consider increasing the trading frequency.
GBPUSD and GBPJPY are more volatile, so don't rush to trade with heavy positions.
GBPUSD is acceptable, but don't treat it as a substitute for EURUSD.
British pound-related instruments move even faster. Especially during the US trading session, sometimes a single candlestick can move very sharply. If the stop-loss is placed too close, it's easy to be stopped out; if the stop-loss is placed too far, the loss on a single trade can easily exceed expectations.
Even more caution is needed with GBPJPY.
This variety seems to offer many opportunities, but it's not beginner-friendly. With higher spreads and more volatile price movements, even a slightly larger position can result in significant changes in unrealized losses.
I don't really recommend beginners start with GBPJPY to practice.
If you haven't even figured out how much a 0.01 lot fluctuation means, or whether to set a stop loss of 30 or 50 points, you're likely to be easily swayed by market movements when trading GBP/JPY. It may seem like you're looking for opportunities, but you're actually gambling on market sentiment.
For USDCHF and EURCHF, pay special attention to leverage.
For Swiss franc-related currency pairs like USDCHF and EURCHF, don't just understand them as having "maximum leverage in forex trading".
Leverage conditions may differ for different currency pairs. Before trading, check the maximum leverage in the current table, and then check the margin requirements. This is a small action, but it can prevent many misjudgments after an order is placed.
What are the differences between Standard and Ultra Low Standard currency pairs?
For the same currency pair, focus on two key differences between Standard and Ultra Low Standard: Average spread and product code.
If you only trade infrequently, Standard is also usable.
If you frequently engage in short-term trading...The spread advantage of Ultra Low Standard is more worth considering. A low spread doesn't guarantee a profit, but it does lower transaction costs.
Additionally, some currency pair codes in Ultra Low Standard may contain... #,for example EURUSD#, USDJPY#.
Before placing an order, carefully check the account type and product code. Do not mix up Standard and Ultra Low Standard products.
XM currency pair trading frequently asked questions
1. Can XM be used to trade EURUSD?
Yes.EURUSD is a common forex currency pair and one of the best options for beginners to start with.
2. Can XM be used to trade USDJPY?
Yes.USDJPY is also very common. When trading this type of asset, pay attention to important US data and relevant news from the Bank of Japan.
3. Are the maximum leverage values the same for all XM currency pairs?
no the same.The maximum leverage may differ for different currency pairs, and Swiss franc-related instruments should be examined separately.
One last piece of truth: beginners shouldn't rush to trade all the XM currency pairs. First look at EURUSD and USDJPY, then observe GBPUSD. For highly volatile instruments like GBPJPY, wait until you've clearly calculated your position size, spreads, and stop-loss before touching it.
