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XM Stop Out Level and Margin Rules Explained
XM's stop-out level is 20% on Standard and Ultra Low accounts, every client has negative balance protection, and leverage steps down as your equity grows. Here is how XM's margin rules work, with worked examples.
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XM's stop-out level is 20% on its Standard and Ultra Low accounts, and 0% on the unleveraged Shares account, according to XM's account comparison. When your margin level falls to 20%, positions start closing automatically. XM also gives every client negative balance protection: its Help Center says you can never lose more than you have deposited.
A 20% stop out is lower than at many brokers, where 50% is common. That gives open trades more room before they are closed, but it also means an account can sink much further before the platform steps in. The rules below explain what happens and how to stay well away from the line.
| Stop out (Standard, Ultra Low) | 20% margin level |
|---|---|
| Stop out (Shares) | 0% (no leverage) |
| Negative balance protection | All clients |
| Max leverage | Up to 1000:1, by equity tier |
| Leverage during news | Not reduced (XM's stable leverage policy) |
| Withdrawals with open trades | Not allowed below 150% margin level (400% at weekends) |
Margin level in one line
Margin level is your equity divided by the margin your open positions use, times 100. Equity is your balance plus the profit or loss on open trades. As losses grow, equity falls and so does the margin level; profits push it up.
| Equity | Used margin | Margin level | What happens at XM |
|---|---|---|---|
| $1,000 | $100 | 1,000% | Normal trading |
| $300 | $100 | 300% | Room to trade, but shrinking |
| $100 | $100 | 100% | No free margin for new trades |
| $20 | $100 | 20% | Stop out: positions start closing |
In practice you run out of free margin for new positions long before the stop out. Our margin calculator shows what a position ties up before you open it.
Negative balance protection
XM's Help Center states that all clients get negative balance protection, meaning you can never lose more than you have deposited. If a weekend gap or a fast market takes a position through the stop out and past zero, the protection means you aren't left owing XM money. That is a real protection that many offshore brokers don't offer.
Negative balance protection limits your loss to what's in the account. It doesn't stop that balance going to zero.
Leverage tiers by equity
XM offers up to 1000:1, but the maximum depends on your account's total equity, according to its Help Center.
| Account equity | Maximum leverage |
|---|---|
| $5 to $40,000 | Up to 1000:1 |
| $40,001 to $80,000 | Up to 500:1 |
| $80,001 to $200,000 | Up to 200:1 |
| Over $200,000 | Up to 100:1 |
Individual instruments have their own caps too: gold up to 1000:1, silver 400:1, major indices 500:1, oil 200:1, and many stock CFDs 10:1 or 20:1. You can lower your account leverage at any time in a few clicks. Our XM leverage guide covers leverage in detail.
Stable leverage around news
Under what it calls a stable leverage policy, XM keeps leverage the same during high-impact events such as US non-farm payrolls, instead of cutting it for new trades as many brokers do. The broker presents that as an advantage, and for traders who trade the news it avoids a sudden jump in margin. It also means the full 1000:1 remains available at the most volatile moments of the month, which is exactly when an oversized position can lose fastest.
Stable leverage lets you trade news at full size. It doesn't make that a good idea. Size news trades for the move you could see in the first minute, not the margin available.
Margin on hedged positions
XM lets you hedge within a single account but not across two accounts. The margin rules differ by market: hedged forex, gold and silver positions need no margin, so you can open a hedge even with your margin level below 100%. For all other instruments, the hedged position needs 50% margin, and a new hedge is only allowed if the final margin requirement doesn't exceed your equity.
Withdrawals when trades are open
You can withdraw your available balance with positions still open, but XM blocks requests that would push the margin level too low: below 150% from Monday 01:00 to Friday 23:50 (GMT+2), and below 400% over the weekend. The higher weekend threshold reflects the gap risk when markets are closed. Our XM withdrawal guide covers the rest of the process.
How to stay far from the stop out
- Size every trade from your stop loss, risking 1% to 2% of equity, not from free margin.
- Set your own account leverage well below 1000:1.
- Keep your margin level in the hundreds; several small positions add up quickly.
- Reduce exposure before weekends and major releases.
- Remember correlated pairs can move against you together.
Changing your leverage
XM lets you adjust account leverage at any time, in its words "with just 3 clicks", from your account area. Lowering it is one of the simplest protections available: the same position needs more margin, so you can't open oversized trades by accident, and your margin level stays higher for the same exposure.
Weekend gaps and the stop out
The stop out closes positions at the next available price, and on Monday that price can be far from Friday's close. That is where XM's negative balance protection earns its keep: a gap can close your trades below the 20% level and even past zero, but you won't owe XM the difference. It is still a loss of everything in the account, which is why weekend exposure deserves smaller size.
A 20% stop out and negative balance protection are generous, but they only decide how the account ends. Your own stop loss decides whether it does. Plan the exit before the entry.
Samuel held three gold positions at 1000:1 on a $400 XM account ahead of a US jobs report. His margin level fell through 20% as the price jumped against him, closing the positions. The move continued, but XM's negative balance protection kept his loss to the $400 in the account. He now trades one position at a time with a stop loss and uses 1:100 leverage.
Frequently asked
How do I change my leverage at XM?
From your account area; XM says it takes three clicks. Lower leverage means more margin per trade and a higher margin level for the same position.
What is XM's stop out level?
20% on Standard and Ultra Low accounts, and 0% on the Shares account, according to XM's account comparison. Positions start closing automatically when the margin level reaches the stop-out level.
Does XM have negative balance protection?
Yes. XM's Help Center says all clients get negative balance protection, so you can never lose more than you have deposited.
What leverage does XM offer?
Up to 1000:1 for equity from $5 to $40,000, 500:1 up to $80,000, 200:1 up to $200,000 and 100:1 above that. Instruments have their own caps.
Does XM reduce leverage during news?
XM says no: under its stable leverage policy, leverage stays up to 1000:1 during high-impact events such as non-farm payrolls.
Can I withdraw from XM with open trades?
Yes, but XM won't accept requests that drop the margin level below 150% on weekdays or 400% at weekends (GMT+2 times).
How is margin level calculated at XM?
Equity divided by used margin, times 100, where equity is your balance plus open profit or loss. The stop out starts at 20%.
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