Trade Forex Trading

Stop Out XAUUSD Level

Negative Free Margin XAUUSD

A XAUUSD Trading Margin call happens when a trader's available XAUUSD Trading Margin falls below the XAUUSD Trading Margin level that the broker requires. This means that if the available Margin in the trader's account drops below the required Gold Trading Margin level, the trader gets a Margin call. As a result, the broker closes some of the open trades until the Trading Margin level goes back above the required XAUUSD Trading Margin level.

If a margin call triggers, the broker might close some open trades or all of them automatically.

What's Margin Requirement Level?

Now if Your Leverage is 100:1

When trading if you have $1,000 & use leverage of 100:1 & buy 1 standard lot for $100,000 your Trading Margin on this trade is the $1000 in your trading account, this is money which you will lose if your open position goes against you : the other $99,000 that's borrowed, the broker will close out the open trade positions mechanically using a Margin Call once your $1,000 has been taken out by the market.

However, this is contingent on the broker implementing a 0% Margin Requirement prior to automatically closing your trade using a Margin Call.

What is 20 % Margin Requirement Level?

If you need 20% of your money as a safety net before your trades are stopped automatically because of something called a Margin Call, your trades will be stopped when you have $200 in your account - you'll get a Margin Call at $200.

What is 50% Trading Margin Requirement Level?

To test MT4 link to your broker's server, look at the status bar. It shows connection details right on the platform.

What is 100% Trading Margin Requirement Level?

If the broker demands that you have 100% of the needed margin before automatically closing your open trades with a Margin Call - at $1,000 you'll receive a Margin call, and your trades will close when your account hits $1,000: This means the trades will close right after you trade one standard contract/lot on this account, because if you even pay one pip spread, your account will go to $990, and the required Trading Margin is 100%, or $1,000, so your trades will be immediately closed by a Margin Call when your Trading Margin falls below 100%.

The majority of brokers do not enforce a 100 Percent Trading Margin Requirement: however, instances exist where brokers impose 100 Percent XAUUSD Trading Margin levels, which are entirely unsuitable for you, and even those setting a 50 percent Trading Margin Requirement may not be appropriate. Opt for brokers that mandate a 20% Trading Margin Requirement: in fact, those brokers setting their margin requirement at 20% are preferable, as the probability of them liquidating your open trade position via a Margin Call is considerably lessened and minimized, as illustrated in the preceding graphic.

For a comprehensive understanding of Leverage and Margin, consult the Instructional Topics Listed Below:

Leverage and Trading Margin Explained

Learn More Tutorials & Tutorials:

XAUUSD Broker