Nenad Kerkez XM

Do you have money to invest, but are unsure how forex trading works? Do you know the difference between ‘low spread’ and Crypto CFD? Photo: Supplied

XM: Six quick-fire questions with Trading Expert Nenad Kerkez

Do you have money to invest, but are unsure how forex trading works? Do you know the difference between ‘low spread’ and Crypto CFD?

Nenad Kerkez XM

Do you have money to invest, but are unsure how forex trading works? Do you know the difference between ‘low spread’ and Crypto CFD? Photo: Supplied

Do you have money to invest, but are unsure how forex trading works? Do you know the difference between ‘low spread’ and Crypto CFD?

XM | Six quick-fire questions with Tradepedia Instructor Reino Deetlefs

With the expert help of XM Trading Expert Nenad Kerkez, your SIX most commonly asked questions have been answered.

A typical day in the life of an XM trader

A typical day for me as an XM trader starts bright and early. After a quick coffee and scanning the headlines, I log into my XM account and review my trades from the previous day. I then take a look at the economic calendar to note any impending market events that could impact my trading pairs.

The platform’s tools and analytics make it easier for me to assess market trends and make well-informed decisions. During low volatility hours, typically between 11 AM and 2 PM platform time, I use this opportunity to step away from the trading screens and focus on personal well-being.

This is when I head to the gym for a good workout session, followed by a nutritious lunch. This break not only rejuvenates me physically but also mentally, so I’m all set for the market’s more active periods.

Once back, I resume monitoring my positions, executing new trades, and adjusting my strategies (primarily MEGATREND) as the market moves. XM’s customer support is always just a click away for any issues or questions I might have. In the evening, I often do a more in-depth market analysis to prepare for the next trading day. All in all, XM offers a seamless trading experience, allowing me to focus on my MEGATREND strategy rather than operational hassles.

Why should South Africans invest with XM?

If you’re in South Africa and considering a reliable platform for online trading, XM is a rock solid choice!

They are regulated by multiple financial authorities and offer a range of more than 1 000 trading instruments.

This gives South African investors an opportunity to diversify their portfolio from the comfort of their home.

The platform also supports ZAR accounts, which is a bonus for locals as it avoids unnecessary currency conversion fees.

Another compelling reason for South Africans to consider trading with XM is the strong emphasis the platform places on education such as XM Live and a special care for clients.

Remember, the XM is a “human” company, putting lots of effort into the customer care program.

XM offers free education, video tutorials, and market analysis reports, which can be invaluable for traders at all levels of experience.

This educational focus empowers South African traders to continuously enhance their skills and stay updated with market trends.

In a fast-moving financial world, having a reliable partner that offers both an advanced trading platform and educational resources can make all the difference.

Whether you’re a beginner or a seasoned trader like myself, XM offers the tools and support to help you succeed in your trading journey.

Investing for dummies: How does forex trading work?

Forex trading, or foreign exchange trading, is essentially the buying and selling the price of currencies on the Forex market with the aim of making a profit. The Forex market is one of the largest financial markets globally, with a daily trading volume exceeding $6 trillion. The market is open 24 hours, five days a week, allowing traders to act on market movements promptly.

You trade currencies in pairs, like EUR/USD or GBP/JPY. If you expect one currency to strengthen against the other, you “buy” or “go long.” Conversely, if you expect one currency to weaken, you “sell” or “go short.” Your profits or losses are realized based on the movements in the relative value between the two currencies in a pair.

For instance, let’s say you decide to buy EUR/USD at 1.1200, expecting the euro to strengthen against the dollar. If the pair rises to 1.1300, and you close your position, you could make a profit depending on your lot size. To put it simply, if you traded one standard lot, which is 100,000 units, a move from 1.1200 to 1.1300 would equate to a $1,000 profit. But even with a mini lot of 10,000 units, you could still make $100.

Besides understanding the basics, it’s crucial for newcomers to know the factors that influence Forex markets. Economic indicators, interest rates, and geopolitical events can all have significant impacts on currency values. Moreover, the Forex market operates in trading sessions corresponding to major global financial markets: Sydney, Tokyo, London, and New York. Each session has its own characteristics and liquidity, affecting the volatility and trading strategy. As a seasoned trader, I often adjust my trading schedule and strategies according to these market sessions to optimize returns. So, while Forex trading may seem straightforward, it’s a field with many nuances that traders should be aware of to be successful. I cover all of these important things in my XM Live sessions.

How safe is my money when investing?

Security is paramount in the trading world.

With XM, you can rest assured that your investment is safe.

They are regulated by several financial authorities, including the Cyprus Securities and Exchange Commission (CySEC) and the Australian Securities and Investments Commission (ASIC).

They also adhere to strict financial standards, including capital adequacy requirements. Additionally, they offer negative balance protection, ensuring you can’t lose more than you’ve deposited.

However, it’s worth noting that while your money is secure from a platform perspective, trading itself carries inherent risks. Always make sure to trade responsibly and consider your risk tolerance.

How little – or much – can I invest?

One of the great things about XM is its flexibility in investment sizes.

You can start with as little as $5, thanks to their micro-lot trading capabilities.

This makes it accessible for beginners or those who wish to test strategies without committing large sums.

On the flip side, more experienced traders can invest as much as they feel comfortable with, given that Forex trading is a highly liquid market.

Another aspect worth considering is the leverage offered by XM, which allows you to control a larger position with a relatively small investment.

For example, if the platform provides leverage of 30:1 (optional), you could control a position worth $30,000 with just $1,000 in your account.

However, it’s essential to remember that while leverage can magnify your profits, it can also amplify your losses.

This makes it crucial to manage your risk effectively, especially if you’re trading with significant leverage.

XM offers various risk management tools like stop-loss orders, which can help you protect your investment from extreme market volatility.

This flexibility in investment and risk management options makes XM suitable for traders with varying levels of experience and risk tolerance.

What is Crypto CFD trading and how does it work?

Crypto CFDs (Contract for Difference) allow you to trade cryptocurrencies like Bitcoin, Ethereum, or Ripple without actually owning the underlying asset. Essentially, you’re speculating on the price movement of the cryptocurrency. If you believe the price will go up, you can open a ‘buy’ position. If you think it will go down, you can open a ‘sell’ position.

The main advantage of Crypto CFD trading is the leverage offered.

This means you can open a position larger than your initial deposit, amplifying potential profits (but also increasing risk).

XM offers competitive spreads and leverages, making it an ideal platform for trading Crypto CFDs.

One of the most significant advantages of trading Crypto CFDs as opposed to buying cryptocurrencies directly through an exchange is the ability to profit from both rising and falling markets.

When you own the cryptocurrency, you can only profit when its value increases. With CFDs, you have the flexibility to ‘short’ the market and potentially profit from price decreases.

Additionally, trading Crypto CFDs eliminates the need for a digital wallet and the associated security risks of being hacked or losing your private key.

Plus, you can take advantage of the leverage offered by XM to amplify your trading position, allowing for the possibility of higher returns (while also increasing risk).

These features make CFDs an attractive option for those looking to capitalise on the volatile nature of cryptocurrency markets without the complexities of owning the actual digital assets.

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The information contained on this website is provided on an “as-is” basis, as general market commentary, and does not constitute investment advice. Such information is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.