Gold Margin Call Level
What Happens When the Trading Account Free Margin is Negative?
A xauusd margin call is when a trader's account free margin falls below the required margin level that's set by broker. This means that because free margin in trader's account has gone below required margin level then the trader receives a margin call and some of the open trade positions in trader's are closed by online broker til this margin level goes back up to the above required margin level.
Some of the open trade positions may be closed or all of the open trade positions may be closed if this margin call is executed automatically by broker.
What is Margin Requirement Level?
Now if Your Leverage is 100:1
When trading if you as a trader have $1,000 and use leverage ratio of 100:1 and buy 1 standard lot of $100,000 dollars worth then your margin on this trade position is the $1000 in your account, this is money which you will lose out if your open position moves against you - the other $99,000 that's borrowed, the broker will closeout the open position transactions mechanically/automatically by using a Margin Call once your $1,000 dollars has been taken out by market.
But this is if your broker has set 0 percent Trading Margin Requirement before stopping out your trade transactions automatically/mechanically by using the Margin Call.
What's 20 % Margin Requirement Level?
For 20% xauusd margin requirement before stopping out your trade transactions mechanically/automatically using what is known as a Margin Call, then your trade transactions will be liquidated once your account balance gets to $200 - at $200 you'll get a margin call.
What's 50 % Trading Margin Requirement Level?
For 50 percent requirement for this level before stopping out your trade positions mechanically/automatically by using what is known as a margin call, then your trade transactions will be liquidated once your account balance gets to $500 - at $500 you will get a margin call.
What's 100% Trading Margin Requirement Level?
If the broker sets 100% xauusd margin requirement for this level before stopping out your open position transactions automatically/mechanically by using a Margin Call - at $1,000 you will get a margin call, then your trade transactions will be liquidated once your account balance reaches $1,000: Meaning trade transactions will closeout as soon as you execute a 1 standard lot on this account because even if you pay $10 spreads your account balance will get to $990 and the needed margin requirement % is 100 % that's $1,000 dollars, henceforth your open trade positions will immediately get stopped out using a Margin Call once your account margin requirement drops below 100 percentage.
Most brokers don't set 100 % gold margin requirement, but there are those online brokers who set 100% gold margin aren't suitable for you at all, even those that set 50 % gold margin requirement still are not good enough. Choose & Select those set 20 % margin requirements, in fact, those brokers who set their trading margin requirement at 20 % Margin Requirement are the best because the likely-hood that they close your position using a Margin Call is minimized just as is illustrated and shown on the examples revealed above.
To Learn and Know More about Trade Leverage & Gold Margin - Study the Learn Courses Explained and Described Below:
Trading Leverage & Gold Margin Explained
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