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XAUUSD MetaTrader 4 Margin Level Calculation Formula

Here's an example of margin on the MT4 program, including what margin, required margin, equity, used margin, and free XAUUSD margin mean.

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

What is Required Margin? : Required Margin is the amount of money your trading broker needs you to have so you can open a trade. It is shown as a percentage.

What does XAU USD equity mean? It totals all the capital in your account.

What is Used Margin? : Used Gold Margin is the amount of money in your trading account which has been already used up when opening a trading lot, this trading lot is the one that is illustrated and displayed in open position transactions. You can't use this amount of money after registering a position because you have already used it and it isn't available to you to open/execute another trade with.

In simple terms, since your broker has opened a trading position with borrowed capital, you as the trader need to ensure the borrowed margin serves as collateral, enabling you to continue leveraging the funds provided by the broker in your Gold trades.

What Does XAU USD Free Margin Mean? : XAU/USD Free XAUUSD Margin is the total money in your account that you're able to use to make new trades. Free Gold Margin is the amount of money in your account that you have not used yet because you have not yet started any trades with this money - this Free Gold Margin is also very helpful for you because it lets you keep your open trades as I'll explain below.

Examples of What's Gold Margin in MetaTrader 4 Platform Software

Examining the margin illustration in MT4 below, with the chosen leverage set at 100:1, the required margin, equating to 1% of the trade value, is $2,683.07. This means the total capital under the online trader's command is $268,307. This is because, with this leverage, the trader commits only a small fraction of their personal funds, borrowing the remainder from the brokerage. At a 100:1 leverage setting, a gold trader effectively utilizes 1% of their capital, which is $2,683.07: if 1% equates to $2,683.07, then 100% totals $268,307.

XAU/USD Margin Calculator Excel

MetaTrader 4 has its own formulas for calculating leverage and margin on XAUUSD trades. You'll find the margin level calculation explained for MT4 right here.

Free Margin - $13,433.48

Free Gold Margin that can be used by a trader to execute new trade transactions on the MT4 software as is displayed on the example revealed above.

Used Margin - $2683.07

XAU/USD Margin which has been already used up by the trader to open trade transactions on the MT4 software as is displayed on the example revealed above.

To Learn & Know More about Leverage and Margin - Learn the Learn Lessons Listed Below:

What's MT4 Margin Percentage on MT4 Explained

Learn More Lessons and Topics:

XAUUSD Broker