XM (XMTrading): Is economic indicator trading prohibited at XM? We explain the latest terms and rules. When trading, you need to be careful about economic indicators and politics. There are times when prices fluctuate dramatically during certain times of the day in FX trading. This is because economic indicators are announced at those times.
- XMtrading
- economic calendar
- The Basics of Economic Indicator Trading at XM
- Trading economic indicators at XM is not prohibited
- How to use XM’s economic calendar
- Advantages and disadvantages of trading economic indicators
- Points to note when trading economic indicators
- Frequently asked questions about economic trading
- Q1: Can beginners trade economic indicators?
- Q2: Which indicators move the most?
- Q3: Should I enter the market the moment the index is released?
- Q4: Is it dangerous to take a position before the index?
- Q5: Will the results of the presentation have a big impact?
- Q6: Which stocks are most sensitive to the index?
- Q7: Is index trading prohibited at XM?
- Q8: Are there any tips to increase your win rate?
- Related
XMtrading
| Operating company | Tradexfin Limited Fintrade Limited |
| Head office location | Unit E, F28, Eden Plaza, Eden Island, Republic of Seychelles |
| Founding year | 2009 |
| Financial License | （FSA）SD010：Tradexfin Mauritius Financial Services Commission (FSC：)：Fintrade Limited Cyprus Securities and Exchange Commission (CySEC)：Trading Point of Financial Instruments Ltd |
| Language support | English、日本語、Malay、Thai |
| Platform | MetaTrader 4 (MT4)／MetaTrader 5 (MT5) |
| Service Countries | Over 190 countries |
| Number of users | Over 1 million accounts |
| Max Leverage | 1000x |
| Eligible products | Forex、Metal、Stocks、Equity Indices / Index CFD、Energy CFD、Commodities、Cryptocurrency |
economic calendar
The XM official website has a recommended economic indicator calendar. It is only available in Japanese, but I think it will be helpful. By using this calendar, you can find out about important events in advance, so you can stop trading when the time comes. When trading in the foreign exchange market, you need to be careful of overseas events. Take measures such as withdrawing funds in advance if necessary, refraining from new entries, and lowering maximum leverage. XM has a dedicated calendar for FX trading, which is simple and easy to understand. Indicators can be displayed in Japanese time, etc.
The Basics of Economic Indicator Trading at XM
Below, we’ll explain the basics of economic indicator trading on XM in an easy-to-understand manner for beginners.
(We’ll also touch on XM’s unique specifications.) Please be careful when conducting multiple trades elsewhere. Official information has terms of use and restrictions, so we’ll provide some key information here. It’s important to understand the trades that are permitted.
◆What is economic indicator trading?
Economic indicator trading is a trading method that aims to profit from price fluctuations caused by the announcement of important economic news (employment statistics, policy interest rates, GDP, etc.).
In particular, immediately after the announcement, prices can move by tens to hundreds of pips in a matter of minutes, which can result in large profits in a short period of time.
◆ Why economic indicator trading on XM is popular
| reason | Commentary |
|---|---|
| Maximum leverage 1000x (depending on account type) | Large lots can be traded even with small amounts |
| Zero Cut System | No charges will be incurred even if your account balance goes negative due to sudden fluctuations |
| Strong contract power | Possibility of reducing slippage with high-speed execution at indicator times |
| Many brands are included | USDJPY、GOLD、NASDAQ |
◆ Main indicators suitable for economic indicator trading
| index | Published country | Magnitude of fluctuation | comment |
|---|---|---|---|
| US Employment Statistics (NFP) | America | ★★★★★ | A prime example of index trading |
| FOMC policy rate | America | ★★★★★ | The entire financial market is moving |
| CPI Consumer Price Index | America | ★★★★☆ | Most important indicators in recent years |
| GDP | Each country | ★★★☆☆ | Directions are easy to read |
| retail sales | Each country | ★★☆☆☆ | Supplementary indicators |
◆ Basic Strategy
- Aiming for a range break before the announcement
Price movements are small before the announcement, and a range often forms.
Following the trend in the direction of breaking through the highs and lows.
- Aiming for a pullback from the sudden rise or fall after the announcement.
Initial movements are prone to being fake.
Aiming for a recovery after a large swing.
- Following the trend after the direction has been established.
Wait for the initial movement and enter once the trend becomes clear.
→ This is known as a second entry.
◆ Points to note when trading economic indicators with XM
- Don’t hold too large a position just before an index is released.
- Zero accounts have narrow spreads, making them ideal for index trading.
- Gold is the most volatile, so beginners should be cautious.
- Always set a stop loss (don’t rely on forced stop losses).
Trading economic indicators at XM is not prohibited
To conclude, the official and general view is that XMTrading (XM) does not completely prohibit trading when economic indicators are announced. Since this does not apply, it is OK as long as you do not trade at fraudulent rates. It is possible to trade with gold, virtual currencies, the US dollar, and the Japanese yen, and has good reviews and word of mouth, but you should be careful about safety when operating.
✅ Economic indicator trading is possible with XM. However, there are conditions.
- XM states that “trading is permitted even when economic indicators are released (e.g. employment statistics).” In other words, there is no blanket prohibition on buying and selling at the time of the indicator release itself, or immediately before or after it.
- Scalping (very short-term trading) is also permitted at XM.
⚠️ However, “high leverage trading targeting only indicators” is prohibited.
- On the other hand, XM prohibits “high-leverage trading that targets only the time before and after the release of economic indicators or statements by important people.”
- In other words, while indicator trading itself is permitted, strategies such as “repeatedly using high leverage and large lots only when indicators are released” may be considered a violation of the terms of service.
- If a violation of the terms of service is determined, penalties such as “confiscation of profits,” “denial of withdrawals,” or “account freezing” may apply.
🧮 Why this? — Background and Risks
- Markets tend to be extremely volatile when economic indicators are released, and large losses can occur in an instant due to widening spreads, slippage, and sudden fluctuations. This can lead to excessive “zero cuts” and “bonus abuse.”
- From the perspective of maintaining a stable trading environment and managing risk, XM restricts such trading that “focuses on trading just before or after indicators.”
How to use XM’s economic calendar
Below, we will explain in practical steps how to use XM’s economic indicator calendar, including how to handle it and how it works. We have compiled content that beginners to intermediate traders can use to understand how to use it to make profits. Since the market is highly liquid, make sure to use your existing positions effectively. However, the chart has a zero-cut system, so it is safe and sufficient.
Main Objective
| Content | meaning |
|---|---|
| Identifying times when the market is most likely to move | Risk management and entry preparation |
| Checking the factors that predict price movements | It provides a basis for direction |
| Position adjustment before the index | Avoid big losses |
| Check the order of featured events | It’s easy to strategize |
Steps to use the XM Economic Indicator Calendar
STEP 1: Check the importance (number of stars)
- ★★★★ or above → Very large impact on the market
- ★★ to ★★★ → Limited impact on each currency pair
👉 Beginners are recommended to start by focusing on indicators with ★★★ or higher.
STEP 2: Identify the target currency and related products
example:
| index | Stocks that are prone to large movements |
|---|---|
| US employment statistics | USDJPY / GOLD / NASDAQ100 |
| CPI (Consumer Price Index) | GOLD / USDJPY / EURUSD |
| FOMC policy rate | Almost all markets, especially GOLD |
👉 Always check the indicators that are closely related to the stocks you trade
STEP 3: Understand the difference between the previous value and market forecast
- Better than expected → Currency is likely to be bought.
- Worse than expected → Currency is likely to be sold.
- However, be careful as the initial movement may be fake.
👉 The most important thing is not the results, but the deviation from expectations
STEP 4: Observe price movements before the announcement
A range market is likely to form 15 to 60 minutes before the announcement,
allowing you to prepare for a breakout.
example:
- Draw upper and lower lines
- Consider stop positions
- Prepare stop orders
STEP 5: Check the trend after the index
Immediately after the announcement, there is a possibility of spread widening and fakes occurring, so we recommend waiting for a few minutes after the announcement to see how things develop.
👉 For beginners, “following the trend after it has been confirmed” is safe
Advantages and disadvantages of trading economic indicators
Below, we will clearly summarize the advantages and disadvantages of economic indicator trading from the perspective of a trader using XM. While the content allows for high-leverage trading, it can lead to risk if not used optimally. This is because the burden of these risks can be significant if extreme price fluctuations occur suddenly. Users should be careful in order to make money.
📈 Benefits of Trading Economic Indicators
① Large movements in a short period of time, resulting in many opportunities.
Prices can move by tens to hundreds of pips within minutes of an economic indicator’s release,
potentially enabling large profits in a short period of time.
Examples: U.S. employment statistics, CPI, and FOMC meetings are particularly prone to large movements.
② Market direction tends to become clear.
After important indicators are released, buying and selling trends often become relatively clear depending on the results,
creating opportunities to ride the trend.
③ Gain evidence beyond technical analysis.
Trading based not only on technical analysis but also on fundamental factors (results vs. expectations),
provides more information for entry decisions.
④ Set times allow for preparation.
Knowing the indicator’s date and time in advance allows for more planned action, such as preparing entry points, stop-loss locations, and lot size adjustments.
⚠️ Disadvantages of trading economic indicators
① The risk is extremely high due to rapid price fluctuations.
Due to the large movements, there are many cases where prices suddenly reverse in an unexpected direction,
and stop losses may not be implemented in time.
② Widening spreads and slippage are likely to occur.
In particular, with gold, NASDAQ, and GBP-based currencies,
spreads may widen around indicators, and orders may not be executed at the desired price.
👉 Stop losses may not always work.
③ Initial movements are prone to fake moves.
The first big movement immediately after an indicator is very often in the opposite direction,
and jumping on this often results in instant losses.
④ It is easy to turn it into gambling.
Beginners tend to be tempted to take large lots when an indicator is active,
which can lead to poor capital management and many people going bankrupt.
⑤ XM prohibits “repeated high leverage trading solely targeting indicators.”
While economic indicator trading itself is not prohibited,
repeated high-leverage trading solely targeting indicators may be a violation of our terms of service.
(This may result in profit confiscation or withdrawal refusal.)
Points to note when trading economic indicators
Below we have summarized some points to keep in mind when trading economic indicators, especially for traders who practice in overseas FX environments such as XM.
While indicators present great opportunities, you could also lose your funds in an instant if you don’t know how to deal with them.
① Beware of widening spreads
Spreads will be wider than usual around the indicator,
leading to large unrealized losses immediately upon opening a position.
Positions may be closed even before the stop loss point is reached.
Stocks to watch out for:
GOLD (XAUUSD)
NASDAQ100/US100
GBP-based currency pairs
👉 Don’t leave large lots open before the indicator.
② Beware of slippage
Your order may not be executed at the specified price.
For example:
Your limit buy order may be placed at 150.000, but executed at 150.300.
👉 Market orders and stop orders are particularly susceptible to this.
Beware of fake initial moves
The more important the indicator,
the more likely it is to initially move in one direction and then suddenly reverse.
Even though you’re on target, you’ll end up taking a loss.
This type of movement is common.
👉 Beginners are safer “not jumping on the initial movement, but aiming for the second wave after the direction is confirmed.”
④ Don’t hold too many positions before the index
If you think it’s an opportunity and hold a large lot,
the spread may widen and you may be immediately hit with a stop loss.
👉 If you hold a position before the indicator, a small lot and stop loss are essential.
⑤ Always set a stop loss
The most dangerous traders are those who leave their positions uncut.
Even with the zero cutoff, the psychological damage is significant.
Relying on stop-loss triggers will not improve your trading skills.
👉 Rule: Stop-loss size → Decide before entering the market.
⑥ Beware of emotional trading
Because indicators fluctuate wildly, it’s easy to lose your cool and get excited, increase your lot size, chase after losses, or even participate like you’re gambling.
👉 This is a field where only those who follow the rules will survive.
Frequently asked questions about economic trading
Below we have compiled a list of frequently asked questions (FAQs) about economic indicator trading.
We provide practical answers to the most frequently asked questions from XM users.
Q1: Can beginners trade economic indicators?
A: It is possible, but it is quite difficult.
Price movements are very volatile, and any delay in making decisions can quickly result in losses, so we recommend practicing first with a demo account or very small lots (from 0.01).
Q2: Which indicators move the most?
A: The most volatile indexes are American indices.
In particular:
| index | Impact |
|---|---|
| US employment statistics (NFP) | ★★★★★ |
| CPI (Consumer Price Index) | ★★★★★ |
| FOMC policy interest rate | ★★★★★ |
| GDP | ★★★★☆ |
| retail sales | ★★★☆☆ |
For beginners, it is a good idea to start by observing employment statistics and CPI.
Q3: Should I enter the market the moment the index is released?
A: Not recommended.
The initial movement is likely to be faked and the spread will widen,
so jumping on the bandwagon is extremely dangerous.
👉 It’s safer to enter on the second wave after the direction has been confirmed.
Q4: Is it dangerous to take a position before the index?
A: Large lots are risky. Small lots are acceptable.
Reason:
Wide spreads can lead to immediate stop-losses.
Slippage can also prevent stop-losses from working.
👉 If you absolutely must hold a position, a “stop-loss limit of 1-3% of your capital” is a golden rule.
Q5: Will the results of the presentation have a big impact?
A: The deviation from expectations is important.
Example:
Significantly better than expected → Currency is likely to be bought.
Significantly worse than expected → Currency is likely to be sold.
👉 Focus on the difference between “expectation” and “result” rather than the actual numbers.
Q6: Which stocks are most sensitive to the index?
A: GOLD and NASDAQ100 move the most vigorously.
| Brand | Features |
|---|---|
| GOLD（XAUUSD） | Explosive movements due to indicators. Spreads tend to widen. |
| NAS100（US100） | There are many fake moves at the beginning. There are also many unexpected moves. |
| USDJPY | Relatively easy to read and stable |
| GBP系 | Tends to fluctuate wildly, beginners beware |
Q7: Is index trading prohibited at XM?
A: It is not prohibited.
However, repeated excessively high lot trading only during indicator periods may be a violation of the terms and conditions.
Please avoid unreasonably high leverage.
Q8: Are there any tips to increase your win rate?
Winning Strategies
Avoid trading immediately after the announcement and observe for 5–10 minutes
Follow a clear trend once it emerges
Reduce your lot size
Study the patterns of past trading periods
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