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MT4 Margin Calculation Formula

Examples of what's margin in the MetaTrader 4 software and What's Margin, What's Required Margin, What's XAUUSD Equity, What's Used Margin and What's Free XAUUSD Trade margin.

Gold Margin, Required Margin, Equity, Used XAUUSD Gold Margin and Free Margin

What's Required Margin? : Required Gold Margin is the amount of money your broker requires from you to open a trade position. It is denoted in percent.

Trade equity, such as XAU/USD equity, reflects the total capital available in your trading account.

What is Used Margin? Used XAUUSD Gold Margin is the money from your account already used to start a trade, which is highlighted in your open trades. As a gold trader, you can't use this money after starting a trade because you've used it and can't use it to start another trade.

In other words, because your trading broker has started a trade for you using money you have borrowed, you as a Gold trader must keep this margin as something to guarantee that you as a Gold trader can keep using the trading help the broker gave you.

What constitutes Free Margin? Free XAUUSD Gold Margin represents the capital available in your account that you, as a Gold trader, can employ to open fresh trades. Free XAUUSD margin is the cash balance not yet allocated to active trades: you have no open positions secured by this equity. This metric is significant for traders as it indicates capacity to sustain or open further positions, as illustrated below.

Explanation of What's Gold Margin on MetaTrader 4 Software Platform

Examining the margin examples for MT4 below, assuming a set leverage ratio of 100:1, the required margin, which represents 1%, is $2683.07 - consequently, the total value controlled by the trader amounts to $268,307. This is because leverage allows the trader to use only a small portion of their own capital and borrow the remainder from their broker. With the leverage set at 100:1, a gold trader is effectively committing 1% of their trading capital, which is $2683.07: therefore, if 1% equals $2683.07, then 100% equates to $268,307.

MetaTrader 4 Margin Level Calculator - MT4 Margin Level - Margin Level Calculation on MetaTrader 4 Software Platform

MT4 Leverage Margin Calculator utility, MT4 Margin Level Calculator, and the MT4 Margin Calculator Tool

Unused Funds - $13,433.48

Free gold margin lets traders start new positions on MT4. The example above shows it.

Used Margin amounts to 2683. 07 dollars

XAUUSD Margin is the money a trader has already used to start trades in the MetaTrader 4 program, as you can see in the example above.

To Learn and Know More about Leverage and Margin - Study the Learn Guides Below:

What is Gold Margin % in MT4 Explained

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XAUUSD Broker