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Margin Liquidation Calculator

Safe Margin Level Gold Trading

A margin call is when a xauusd trader's account free margin falls below the required margin level that is set by broker. This means 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 positions in trader's are closed by online broker til this margin level moves back up to above required gold margin percent region.

Some or all of your open trades might be closed if the broker automatically does this margin call.

What is Margin Requirements Level?

Now if Your Leverage is 100:1

When trading, should a participant commit $1,000 and utilize a 100:1 leverage mechanism to acquire one standard lot valued at $100,000, the obligated margin commitment drawn from the trader's capital is $1,000. This sum is subject to loss should adverse market movement affect the open trading position. The additional $99,000 borrowed will prompt the online broker to automatically liquidate open trades via a Gold Margin Call once market activity depletes the initial $1,000.

But this is if your broker has set 0 % Trading Margin Requirements before stopping out your trade transactions automatically/mechanically by using the Margin Call.

What is 20% Margin Requirements Level?

For 20 percent Margin Requirements before stopping out your trade transactions mechanically/automatically using what's referred to as Margin Call, then your trade transactions will be liquidated once your trading account balance reaches $200 dollars- at $200 you will get a margin call.

What's 50% Margin Requirements Level?

You'll get a margin call when your balance reaches $500, and at that point, your open trades will be closed out mechanically/automatically using what is known as margin call for a 50% requirement for this level prior to doing so.

What is 100% Margin Requirements Level?

If the broker sets 100% Margin Requirement of this level before closing out your open trade positions automatically/mechanically 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 positions will liquidate as soon as you executes a one standard lot on this 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 companies that handle investments don't ask for all of the money for a trade up front, but if some do ask for all the money, they are not a good choice for you: even companies that ask for half of the money aren't good enough. Pick companies that only ask for 20 percent of the money for a trade: these are the best because they are less likely to close your trade early, as shown in the examples above.

To Gain a Deeper Understanding of Leverage and Margin Principles, Study the Educational Courses Illustrated Below:

XAUUSD Leverage & Gold Margin Explained with Example

Study More Lessons & Courses:

XAUUSD Broker