XTB Broker Tutorial – How XTB broker trading platform works?

How XTB broker trading platform works?

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If you want to discover how the XTB broker trading platform works , we have prepared this tutorial in which we explain in a simple way, step by step and with screenshots , how to manage your xStation platform , the tools available to analyze the market and the basic concepts that you must know to open, control, edit and close positions with this online broker.

Why choose XTB as a broker to trade online?

XTB is a fairly popular Forex and CFD broker that is trusted by clients worldwide.

This intermediary has offices in the United Kingdom, Spain, Poland, Germany, France, Portugal, Italy and Turkey , among other countries. In the case of  market , it has many advantages as it is regulated by the National Securities Market Commission (CNMV) . This shows that it complies with legislation and for claim cases it will not be necessary to resort to a foreign body.

In addition, it has the regulation of one of the most demanding organizations that exist in this sector, such as the Financial Conduct Authority (FCA) of the United Kingdom .

XTB offers a wide range of markets and products for online trading , including:

  • About 50 currency pairs from the Forex market.
  • More than 20 indexes of the main worldwide.
  • Raw materials (pro, silver, oil, natural gas, cocoa, sugar, corn, soy, …).
  • Main cryptocurrencies .
  • CFDs on shares (more than 1,500, European and American shares).
  • Synthetic stocks (they act like cash stocks, without leverage and with more benefits. No custody fee is necessary).
  • 60 CFDs on ETFs (listed investment funds).

The customer service of this broker is complete . It offers users a telephone, online chat and email service . Making a personalized account manager available to the user to resolve any questions that may arise. The customer service operates 24 hours a day .

XTB also has a series of additional services, such as market reports and a tool to calculate the position size , in order to carry out more effective risk management.

Otherwise, this broker offers quite competitive commissions and leverage that varies depending on the financial instrument you operate. To get an idea, in the foreign exchange market (Forex) offers a variable spread from 0.9 pips for the EUR / USD in your Standard account.

All this makes XTB one of the most complete online brokers that exists . It has a good evaluation among the community of traders . No wonder he is one of the industry leaders.

However, we have not yet addressed an essential element in the valuation of a broker such as its trading platform . This is because we are going to analyze it in depth in this tutorial about the XTB broker .

 

What possibilities do we have depending on the device where we are going to run the trading platform?

For desktop computers :

XTB makes available to the trader two powerful platforms to work on a PC with Windows operating system, such as xStation (its own platform accessible from the client area or from the XTB website) and the legendary MetaTrader 4 that many other online brokers also offer. .

XTB xStation , allows the option to use it in web format or the downloadable version for PC (32 bit / 64 bit). The option depends on whether you usually work from the same PC each time we operate or on the contrary we usually use different equipment for whatever reason.

xStation is available in download mode also for those computers that use a MAC operating system .

You can access these platforms and their different versions from the XTB website (From the top menu ” Our Offer ” >> ” Trading Platforms “:

https://www.xtb.com

 

For mobile devices :

Whether we use a mobile phone, a tablet and even a smartwatch with an Apple or Android iOS operating system , the XTB broker gives us the possibility of also using a specific version of its xStation or Metatrader 4 platform .

To access these platforms and their different versions you must go to the XTB website (From ” Menu ” >> ” Our Offer ” >> ” Trading Platforms ” and download the corresponding one according to the mobile device you use:

https://www.xtb.com

 

XTB Broker Tutorial

In our case , to develop this step-by-step tutorial we will use and show how the XTB broker’s xStation trading platform works in its version for desktops .

In your case, if you are going to use a mobile or tablet , you can download and install the XTB trading app from the link above to the broker’s website and choose the version that corresponds to your device. Then open a demo or real account and continue reading this guide because, although the interface is slightly different, the options that you will find are practically the same as in the desktop version, so this tutorial can also be very useful.

 

STEP 1- Open a demo account in the XTB broker

The first step to analyze the trading platform provided by the XTB broker is to open a demo account to familiarize yourself with xStation . In this way we can test all the options that it allows us and learn to open, edit and close positions without putting our money at risk from the first moment. When we already know the trading platform well we can easily switch to a real money account.

To open the demo account XTB please click here .

The following screen appears, in which we must enter our email address .

 

Once we have entered our email and accepted the terms regarding Data Protection (just below the form to enter the email), we will have to click on the “Next” button . At this point, this screen will appear:

 

This is the registration form to open a demo account with XTB. Simply fill in the fields and click the “Submit” button .

Let’s look at three details :

  1. We have the option in this form to choose between the xStation or Metatrader platform . As what is here is to offer a tutorial of the first, logically it is the one that will be chosen. But it is indicated to inform that it is here, and not elsewhere, where the type of platform to use is chosen (even if it is in the demo account).
  2. We have the option of choosing an account type from the three that XTB offers (Basic, Standard and Pro). The purpose of this is to perform a demo simulation with the type of account that interests us most. In our case we are going to select the Standard.
  3. We have to establish a password that will help us to access the platform later.

Once this is done, XTB will send us an email to the address indicated above, which will give us access to the web version of the xStation platform .

You can follow the tutorial using this xStation platform in web format (the fastest and easiest option) or if you prefer, download the platform from the XTB broker website and install it on your computer. The access data is the same as for the web version.

 

STEP 2- Elements of the XTB platform

Once accessed, the XTB xStation platform looks like this:

We are going to break it down section by section . Starting from the base that all these sections are expandable to full screen to work more comfortably, as well as it is possible to close them to remove them from the screen of the platform.

 

  • Quotes

It is on the right. In this section the trader can select the investment instruments that he wants to have in sight, to operate with them or simply to have them under control, within the different markets that the XTB broker offers us.

 

At the top we have a series of tabs with the instrument categories and in each category we can expand / fold the different subcategories available.

By clicking on any of the selected assets, it will offer us more detailed information . Also the option to open a chart for that asset . From here you can carry out the most important operations with the selected asset.

 

We also have a window of favorite assets (the symbol is a star, clicking on it is selected and removed) so that the trader constantly has quick access to the markets that usually operate more frequently.

 

  • Operational section

This section is made up of several tabs so that the trader can attend to all the elements of his analysis, fundamentally the stock chart.

– The following image shows the “Charts” tab (basically the price chart of the selected asset, an essential tool for making our trading decisions). We will stop at it because it is one of the most important elements and that every trader must know.

 

On the left side of this section we have the buttons necessary to carry out a technical analysis of the complete asset (indicators, lines, symbols and figures, Fibonacci elements, text for annotations, etc.). We only have to go to any of these buttons to choose the desired option.

At the top we have the asset symbol (in this case it is the Ibex 35), just to the right side of the symbol we can change the time frame of the graph. More information: What is the right Time Frame when Trading? .

 

Below the symbol we have all the options to change the chart settings . Be it changing the type of graph (for example from candlesticks to bars or linear) and zoom adjustments .

Japanese candlestick charts tend to provide the most information when trading. Trying to synthesize to the maximum (since this topic would give for a few articles) we can point out the following details about the Japanese candles: We have 2 types of candles: bullish (green) and bearish (red) :

 

This type of graph is generated based on the time frame you have selected . For example for a 1-day frame each candle will represent the evolution of the price in 1 day, on the other hand in a 1-hour frame each candle represents 1 hour and so on. Suppose the time frame is 1 day:

If the candle is bullish (green) the opening price represents the price at the beginning of that day, throughout the day it may have oscillated up and down and finally the closing price represents the exact price at the end of the day. . For the candle to be bullish, the opening price must have been lower than the closing price . This is what the body of the candle tells us and therefore the higher the candle is, the greater the upward force will have been (buy operations) .

In the opposite case is the candle is bearish (red) where the opening price also represents the price at the beginning of that day, throughout the day it may have oscillated up and down and finally the closing price represents the exact price at the end of the day. For the candle to be bearish, the opening price must have been higher than the closing price . The higher the candle is, the greater the downward force will have been (sales operations) .

A greater than the body of the candle we also have what is known as the shadow or wick that can be higher and / or lower depending on the price has reached a certain point below the opening price and above the closing price in a candle Bullish or above the opening price or below the closing price on a bearish candle. The size of the shadows and the bodies of the Japanese candles and also the analysis of several previous candles can give us much more extensive information on the behavior of the price , what is the trend, its strength and what may be its evolution. in the future.

Returning to the trading platform of the XTB broker , at the bottom we also have tabs with the different charts that we keep open to easily change assets (charts that we have been opening). We can close them by clicking on the X, inside its tab.

The other tabs in this section besides the graphic are:

  • – News : Provides access to the main reports and latest market news.
  • – Calendar : From here we can see the past, present and future economic agenda.
  • – Market Analysis : Provides market sentiment and other asset statistics.
  • – Education : It offers courses and other training tools that the XTB broker offers its clients.

– To end this section we must say that in the upper right part of it, the trader has all the options to manage the configuration of his account . From there you can make cash operations ( deposits and withdrawals ) and change the appearance of the screen (as shown in the following image), among other options.

We also have a button for message notifications , connection and management of the distribution of the sections on the screen (change the profile of the platform).

 

  • Monetary section

This section is located at the bottom of the screen (in the initial configuration, it can be changed where we want each section to appear) and shows everything related to positions, both open and closed history.

From there we can control our balance sheet , equity, our margin level and the margin that we have available to open new operations or know if we are highly leveraged.

Like the previous section, it is divided into several tabs in which you can see the currently open operations (we will see this in more detail), the pending orders , the history of our operations (very useful to obtain statistics from our system and of ourselves as traders) and a small account statement .

Next we will see that, having the platform divided into these three sections that we have just described, the actions to be carried out in our operations are very simple:

 

STEP 3- How to open a position on the XTB platform?

There is more than one way to open a position on the XTB xStation platform.

The first one is from the quotes section and clicking on the instrument that we want to trade . When opening the extended information of the asset we have two buttons. One red to sell the instrument and one green to buy the instrument.

When trading in Forex and CFDs you have the possibility to open a buy position and later close it with a sale if you think the price is going to rise (it is usually called “going long”). But you also have the possibility of opening a sale position and closing it later with a purchase if you think that the price will go down (it is called “going short”). Therefore you have the opportunity to obtain benefits from both bullish and bearish movements.

Among the buttons to sell or buy we have a box to select the size of the position.

If you doubt this is the quick way , but to open a position properly we must attend to all the details (without forgetting the Stop Loss and Take Profit orders). For this, from this same section and seeing the extended information of the asset, we only have to click on one of the buttons. If we pass the cursor over the buttons, it will indicate the function of each one. Specifically, the one we are looking for is ” Open Ticket “. The icon is as follows:

Clicking on this button opens the Asset Ticket window. In it we have all the details to open a position and also the option to leave a pending order.

We are going to see one by one the elements that we can configure from this window to open a position in the xStation platform of the XTB broker:

– Volume

It is the size of our position , of the investment made in the market (not the part of the guarantee that we provide, as we will see shortly).

The volume is accounted for in batches or contracts . A lot of Forex is equivalent to a standard contract of 100,000 units of the currency with which you are going to trade. This is a considerable position size that required quite high guarantees, which is why most online brokers, such as XTB, allow us to select fractions of that standard contract. This is what is known as ” mini- lots” (0.1 lots) and ” micro- lots” (0.01 lots).

– Contract value

This is another way of selecting the position size . Instead of choosing the size of the lot we have the option of determining the amount to invest directly. When we change this amount the volume automatically adjusts.

A lot is 100,000 units, a minilot (0.1) 10,000 units and a microlot (0.01) corresponds to 1,000 units of the currency in which you are operating. This is not the amount that we should have in our account but it is provided by the broker. We only provide a percentage of this amount as collateral to cover possible losses.

– Margin

It is yet another option to select the position size. Until now, the two views focused on the actual investment being made in the market. Here it is a matter of choosing the level of guarantee that we want to provide and adjusting the position size accordingly.

The size of the position is far from what we invest, because the leverage factor comes into play (which has been discussed before the guarantee percentage). The multiplies leverage investment and only depositing the corresponding guarantee margin will be multiplied to open the size of the contract chosen.

In this example, the level of leverage that XTB offers us is 1: 200 , so that with a € 1 margin we would be investing € 200 in the market. If for example we choose € 20 of margin we could actually open a position of € 4,000 as the value of the contract and a volume of 0.04 lots (4 micro-lots).

 

UPDATE: The new regulation on trading with leverage approved by the European Securities and Markets Authority (ESMA) that entered into force on August 1, 2018 limits the leverage available to retail clients of brokers based in the European Union. The maximum available leverage varies between 1:30 and 1: 2 depending on the volatility of the underlying asset:

1:30 for the major currency pairs.
1:20 for secondary currency pairs, gold and major indices.
1:10 for non-gold raw materials and secondary indices.
1: 5 for stocks and other securities.
1: 2 for cryptocurrencies.

These limits do not affect professional clients or brokers that operate from countries outside the European Union.

 

– Spread

This is a type of commission charged by the broker for opening a trade . The intermediary offers us two prices, one to buy the asset and the other to sell it , the difference between the two is the spread .

We are charged when opening operation. For this reason, all the positions we open will begin in losses . The greater the volume or value of the contract, the greater the amount of spread, this is because the spread is multiplied by the amount or volume that we invest.

– Commission

In certain financial instruments, no fee is charged by spread or there is a part of spread and part of commission. The broker charges a commission that can be fixed or a percentage of the amount to invest.

In this case we can see what kind of fees the XTB charges us (if it is a percentage commission on the investment or a spread) and what is the value of each one in a simple and transparent way.

– pip value

A pip is the basic movement that can occur in the price of the instrument , it is the minimum of fluctuation. The greater the volume of the operation, each point of fluctuation or pip (in our favor or against us) will be greater.

So we can have this parameter, which is so important for monetary and risk management, controlled only by attending to the value that each point of fluctuation or pip represents. No need to perform calculations.

– Daily swap

When a position is left open and happens the next day (although the currency market does not close, at 23:00 time a change of day is made) the broker will apply a cost to us for keeping the money invested (we speak of all the amount of leverage it provides us).

It is a refinancing of the operation. The cost is usually calculated taking into account the interest rate of the two currencies in the overnight Interbank Market. Thus, the currency purchased will earn us interest, while the currency sold will earn it. Remember that when you open a foreign exchange transaction you always buy one and sell another simultaneously.

As a consequence, both types of interest are subtracted and the resulting is charged or credited to our account. For this reason the daily Swap (also called Roll Over) can be positive or negative .

When it comes to any other asset, we will be charged the corresponding daily interest for the refinancing (Roll Over) of the operation every day.

– Stop Loss

It is an order that we leave pending (pending) in case the market turns against us and we enter losses to be able to close the operation at a certain price level automatically . This order is launched, but it will not be executed until the market reaches the price that we will select in this option. It is a way to protect ourselves against unaffordable losses , thus controlling our risk in each operation.

– Take Profit

Similar to Stop Loss, with the difference that this order is placed to close the operation taking profits . When the price reaches a certain level at which we leave an order placed, the operation will be closed with the corresponding profit . It is useful for setting a profit target as part of our trading strategy.

Stop Loss is essential for proper risk management, if we have the option of placing it before opening a position, much better. Take Profit is important, but to a lesser extent than Stop Loss. In any case, a well-designed strategy should have these two levels defined in advance of its opening.

– Sell

It is the button to launch the sale order of an asset. In other words, open a short position.

– Buy

It is the button to launch the purchase order of an asset. In other words, open a long position.

 

We also have the “Pending Order” tab : As for pending orders, the best example is when we have explained Stop Loss and Take Profit. Only this time it is not about closing the operation, but opening it. We have the possibility to place an order on hold until the market reaches the price level established in that order. Until the market reaches this level, the order will not be executed.

 

On the XTB xStation platform there are other ways to open a position . One of them is to do it directly on the graph screen but it is a quick way, without the possibility of adjusting all the parameters described above.

If we place ourselves directly in the chart window, just below the asset symbol we have the same red and green buttons (Sell or Buy respectively) , in which the offer and demand price of the asset is indicated. The position size is located between the two buttons.

For example we are going to take a short position in Gold. Just by clicking on the sell button (red) we have opened a short position. We will have to pay attention to the correct size before proceeding. The position has been opened but we have not been able to establish either stop loss or take profit. For this we would have to edit the position (we will see how to do it in Step 5 of this tutorial).

The third way to open a position in XTB is by accessing the “Market Analysis” tab , previously seen within the operating section. From there we have the different assets with their respective analyzes. If we click on “ Operate ”, the corresponding “ Asset Ticket ” (also seen) will open.

 

STEP 4- How to control the open positions in XTB?

Once a position is opened in the xStation platform of the XTB broker, it will automatically appear within the monetary section, in the ” Open positions ” tab . You can view at this point all the positions that are open quickly.

The data on the position that this section shows us are the following:

– Financial instrument

In the example in the image above, we have opened a position in the EUR / USD currency pair. The platform groups the positions of the same instrument in the same section. To view all the individual positions within the same asset, clicking on the name of the asset will display all the positions:

– Type

Here it is simply shown whether the position is buy or sell. That is, if we operate long or short on the instrument.

– Volume

The size of the operation. It is possible to change the size by partially closing the position. We will see how to do it in the next step.

– Opening time

It indicates the date and time of opening of the operation. It is useful for managing them.

– Opening price

Simply the price at which we bought or sold the asset. In other words, the price at which we open the trade.

– S / L

Stop Loss level. We should put it when opening the operation. However we will see how it is introduced once opened. The price at which we place the Stop Loss appears in this field. In the event that there is no stop, the symbol “+” will appear. By clicking on this symbol we can enter a Stop Loss order.

– T / P

Take Profit level. The same could be said as that mentioned for Stop Loss. Although in this case the Take Profit is not as important as the Stop Loss. There are traders who leave the open position to evolve without actually placing this profit taking order when the price reaches a target level. However, a well-defined trading strategy should have a Stop Loss and a Take Profit from its source.

The price that we have configured the order will appear. If this order does not exist, the symbol “+” will appear. As we have already mentioned, by clicking on this symbol we can establish an order of this type if we have not done so when opening the operation.

– Market price

It is only the price at which the asset is at the moment in case we do not have the graph on the screen.

– Commission

The commission, normally spread, that XTB charges us for opening the transaction.

– Swap

This is the “Roll Over”, financing price (interest) for holding an open position every day. If we do intraday trading we don’t have to worry about paying the cost of financing interest to keep the position open. We have previously explained what this calculation is based on and that it can sometimes be in our favor.

– Benefit

The profit of the operation, if the position is in losses will appear in negative.

– Close

This button is a dropdown that offers different closing options. We will see it when we get to STEP 6 of this tutorial on the XTB broker.

 

STEP 5- How to edit an open position?

To edit an open position we just have to click with the right mouse button on the open position and that we will visualize in the monetary section, as we have explained in the previous section.

Once this action is done, in the drop-down menu we select the “Modify” option . The corresponding box will not appear to edit (modify) our order.

What can we edit in our order?

Well, basically, we can manage the open position by modifying:

  • The Stop Loss
  • The Take Profit
  • Placing a Trailing Stop Order : This is a Stop Loss order. But a dynamic stop loss that moves automatically as the price moves in our favor. A stop loss distance is set at the current price and as the price evolves in our favor, the stop is at higher levels (or lower if the position is for sale). It serves to minimize losses and even protect a certain level of profits in case the price is later turned against us. The trailing stop does not go back, it only moves in our favor as the price goes in the direction we have predicted.
  • Perform partial closings of the position : This involves closing part of the position size, leaving another part open. It is useful to manage our operations. So we have options to take partial profits (or assume partial losses) and let the rest of the operation evolve.

We can also perform partial closings from the drop-down menu that is displayed when right-clicking on the open position, using the “Partial closures” option.

We can edit Stop Loss and Take Profit in a more direct way. There are two ways:

– From the same open position . As we have seen, if we click on the “+” symbol within the information of the open position, we enter a Stop Loss and Take Profit order. Once entered it is possible to modify it by clicking on the same field.

 

– From the stock chart , it marks the opening price, the Stop Loss and the Take Profit with a dashed line. If we click on the corresponding line and drag it, we can edit the Stop Loss and Take Profit levels.

 

STEP 6- How and when to close an open position on the XTB platform?

Our positions may be closed for various reasons:

    1. Our strategy is well designed, our analysis is correct, and the price has reached the target level of profit . In this case (the most positive for our interests) the operation will automatically close when the price reaches the level where the Take Profit order was placed .
    2. We enter losses and the Stop Loss order is executed . It is more than recommended to place this order (and from the beginning). It is insurance. In such a situation the price will reach the level at which we have placed the Stop Loss order and the position will close short of the losses.
    3. Sometimes we detect that our strategy fails before the described orders are executed. Whether it is in losses or if we have won a good part of our objective. In this case we must proceed to a manual closure .

In the previous sections we have already seen how to place and edit Stop Loss and Take Profit orders. In this section we will see how to make manual closings.

A manual closure can occur for the reasons described above. There are times when we detect that the market makes an unexpected movement and our strategies are invalidated. At this time the trader consciously and deliberately closes the position, before the price reaches the corresponding level for the automatic closing order to be executed.

We are not only referring to when the strategy fails and we enter losses . Sometimes it is possible that the price does not reach the established profit target and, observing a possible turn in the market, we decided to close the operation with benefits .

To be able to close a position manually on the XTB xStation platform we have several ways. The first is clicked on the “X” that appears just in the open position display, just below the “Close” field.

 

We also have the option of definitive closing. In the box we are opened by editing a position (Modify) and clicking on the “Close” button at the bottom. It is another way to close an open position.

 

Finally, if we click on the “Close” button, corresponding to the monetary section of the platform (which we have also referred to), it offers us the following options:

  • Close all positions
  • Close winning positions
  • Close losing positions

 

Once the operation is closed , we can see the result at the bottom of the monetary section. The status and evolution of our account can be controlled according to the following concepts that appear in the aforementioned section (bottom of all):

– Balance

The balance is the funds you have in your trading account . The deposits and withdrawals you have made plus the gains and losses from operations. The balance of open positions is also included, so this field is updated in real time if you have open trades .

– Heritage

Equity is the balance you have in your trading account without including open positions . As soon as you close an operation, the balance will be included in the equity of your account and it will change.

– Margin

When opening a position you will need to provide as a guarantee a part of the funds you have in your account. In this field you will see the amount of funds that you have committed in the different operations.

The margin is also updated in real time taking into account the benefits or losses of open trades, as the market fluctuates. When you close the position the margin will be released.

It should be kept under control because if we run out of margin the broker will require us to provide more guarantees, this is what is known as “ Margin Call ” and immediately afterwards it will automatically close the open positions that are necessary to return to an adequate level and prevent lose more balance than you have deposited in your trading account.

– Free margin

Level of margin that we have, are the funds that we have liberalized in our account. Just as the margin field shows us the funds committed, this field shows us what we have available to open new positions .

The greater our balance sheet the greater margin we will have. Free margin is the difference between margin and balance. By closing a position, our free margin will increase as committed margin will decrease.

 

Once a position is closed on the XTB xStation platform, these fields will be automatically adjusted and the profit or loss will become part of our equity, we will reduce the margin and have more free margin. In addition to this, each trade we close will go to the trade history .

To see the positions previously closed, we will only have to select the “History” tab in the monetary section, as shown in the following image:

In this section we can select the date range to choose the period of the history of closed positions that we want to be shown. It is useful to obtain statistics of ourselves as traders, prepare our trading diary or analyze the evolution of our trading strategy.

 

So far our tutorial on how the XTB broker works . Through this guide we have seen that the xStation platform is easy to use and offers everything necessary to carry out our operations.

 

You can also send us your questions or opinions from the comments section and we thank you for sharing this tutorial on social networks with your Likes, Tweets or +1 so that it can be useful to other traders. Thank you.

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