Margin Liquidation Calculator
Safe Margin Level Gold Trading
A margin call is when a trader's account free margin drops below the required margin level that's set by broker. This means that because free margin in trader's account has dropped below required margin level then trader receives a margin call and some of the open trade transactions in trader's are closed by broker til this margin level moves back up to above required gold margin percent region.
Some of the open trades might be closed or all of the open trades might be closed if this margin call is automatically executed by broker.
What's Margin Requirements Level?
Now if Your Leverage is 100:1
When trading if you have $1,000 and use leverage of 100:1 & buy 1 standard lot for $100,000 your margin on this trade is $1000 in your account, this is money which you'll lose is your open trade transaction moves against you the other $99,000 that's borrowed, the online broker will close out the open trade transactions automatically using a Gold Margin Call once your $1,000 has been taken out by market.
But this is if your broker has set 0 % Trading Margin Requirements before liquidating your trade transactions automatically using the Margin Call.
What's 20% Margin Requirements Level?
For 20 percent Trading Margin Requirements before liquidating your trade transactions automatically using what's known as Margin Call, then your trade transactions will be liquidated once your trading account balance reaches $200 - at $200 you will get a margin call.
What's 50% Margin Requirements Level?
For 50 % requirement of this level before closing out your trade transactions automatically using what's known as margin call, then your open trades will be closed out once your balance gets to $500 - at $500 you will get a margin call.
What's 100% Margin Requirements Level?
If the broker sets 100% Margin Requirement of this level before closing out your open positions automatically using a Gold Margin Call - at $1,000 you'll get a gold margin call, then your trade transactions will be liquidated once your trading account balance reaches $1,000: Meaning trade transactions will liquidate as soon as you executes a one standard contract on this trading account because even if you pay 1 pips spread your account balance will get to $990 & the needed Trading Margin Requirement % is 100% i.e. $1,000, hence your orders will immediately get liquidated using a Gold Margin Call once your Trading Margin Requirement falls below 100 percent.
Most brokers do not set 100 % Trading Margin Requirements, but there are those brokers that set 100 % margin aren't suitable for you at all, even those that set 50 % Trading Margin Requirements are still not good-enough. Choose those set 20 percent Trading Margin Requirements, in fact, those brokers that set their margin requirement at 20 % Margin Requirement are the best because the likely-hood they close your trade using a Gold Margin Call is reduced as displayed in the examples above.
To Learn and Know More about Leverage and Gold Margin - Study the Learn Trading Courses Explained Below:
XAUUSD Leverage and Gold Margin Explained
