Trade Forex Trading

Stop Out XAUUSD Level

Negative Free Margin XAUUSD

A XAUUSD Trading Margin call is when a trader's account free XAUUSD Trading Margin goes below the required XAUUSD Trading Margin level that is set by the broker. This means because the free Margin in the trader's account has gone below the required Gold Trading Margin level then the trader gets a Margin call & some of the open trades in the trader's are closed by broker til this Trading Margin level goes back up to above the required XAUUSD Trading Margin level.

Some of the open trades may be closed out or all of the open trades might be closed out if this Trading Margin call is automatically executed by the broker.

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 account, this is money which you will lose if your open position goes against you : the other $99,000 dollars 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.

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

What is 20 % Margin Requirement Level?

For 20 % Trading Margin Requirement before stopping out your trade positions mechanically using what is known as Margin Call, then your trades will be stopped out once your account balance reaches $200 - at $200 you'll get a Margin call.

What is 50% Trading Margin Requirement Level?

For 50 % requisite of this level before stopping out your trade positions mechanically using a Trading Margin call, then your open positions will be stopped out once your balance gets to $500 - at $500 you'll get a Margin call.

What is 100% Trading Margin Requirement Level?

If the broker sets 100 % Trading Margin Requirement of this level before closing out your open positions mechanically/automatically using a Margin Call - at $1,000 you'll get a Trading Margin call, then your trades will be closed once your account balance reaches $1,000: Meaning the trade transactions will close out as soon as you execute a one standard lot on this account because even if you pay one pips spread your account balance will get to $990 and the needed Trading Margin Requirement percentage is 100% i.e. $1,000, hence your trade orders will immediately get closed using a Margin Call once your Trading Margin Requirement falls below 100 %.

Most brokers do not set 100 Percent Trading Margin Requirement, but there are those brokers that set 100 Percent XAUUSD Trading Margin aren't suitable for you at all, even those that set 50 percent Trading Margin Requirement are still not suitable. Select & Choose those set 20% Trading Margin Requirement, in fact, those brokers that set their margin requirement at 20 % Margin Requirement are the best because the likelihood that they stop out your open trade position using a Margin Call is reduced and minimized like is displayed and shown in the above illustration.

To Learn & Know More about Leverage & Margin - Study the Learn Topics Described Below:

Leverage and Trading Margin Explained

Learn More Tutorials & Tutorials:

Forex Market Traders Seminar Gala

Forex Market Traders Seminar

XAUUSD Broker