How is XAUUSD Margin Calculated? Gold Margin is equal to Used XAUUSD Margin added to Free XAUUSD Margin
XAUUSD Margin = Used XAUUSD Margin + Free XAUUSD Margin
What is Used XAUUSD Margin? : amount of money in your trading account which has already been used up when buying a xauusd lot, this contract is the one that is displayed in open positions. As a trader you can't use this amount of money after opening a trade because you have already used it & it is not available to you.
In other words, because your xauusd broker has opened up a position for you using the capital you have borrowed, you must maintain this usable margin for your trading account as a security to allow you to continue using this xauusd leverage he has given you.
What's Free XAUUSD Margin? : amount in your account that you can use to open new trades. This is the amount of money in your account that has not yet been xauusd leveraged because you have not yet opened a trade with this money - this money also is very important for you as a trader because it enables you to continue holding your open trades as will be explained below.
Example of How is XAUUSD Margin Calculated on MT4?
The xauusd margin examples in MetaTrader 4 xauusd Platform below, the set xauusd trading leverage ratio is 100:1, the gold margin is equal to xauusd used margin plus xauusd free margin.
MT4 XAUUSD Leverage Margin Calculation - Gold Margin is equal to Used XAUUSD Margin + Free XAUUSD Margin
XAUUSD Margin - $16,116.55
Gold Margin is equal to Used XAUUSD Margin + Free XAUUSD Margin
$16,116.55 = $2683.07 + $13,433.48
$2683.07
XAUUSD Margin used to open trades in MetaTrader 4 platform example above
$13,433.48
Free Gold Margin that can be used to open new gold trades in MetaTrader 4 platform example above.
Gold Margin is equal to Used XAUUSD Margin + Free XAUUSD Margin
To Learn and Know More about Gold Leverage & Margin - Read the Topics Below:
XAUUSD Leverage and Margin Explained
