How is Margin Level Calculated?

To log into a MetaTrader 4 practice crypto account, go to File Menu. Then click Login, as shown in the MT4 example below.

Definitions of XAU USD Margin, Required Margin, Equity, Utilized Margin, and Available Margin

What is Margin Required? It's the money your broker needs from you to place a trade, shown as a percentage.

What is Equity? : It is the total sum of capital you have on your account.

Used Margin is the money in your account that you've already put into an open position, like a XAU/USD lot. You'll see this amount in your open trades. Once you enter a trade, you can't use that money again - it's locked in until you close the position.

Put simply, your broker opens a trade with borrowed funds. You need to keep margin as backup. This lets you keep using the extra buying power they give.

Free margin is the cash in your account ready for new gold trades. It's the unused portion not yet tied to open positions. This amount helps keep trades open longer, as you'll see next.

Margin Levels on MT4: How They're Calculated

Look at the margin example in MT4 software. Leverage sits at 100:1. The margin is 1% or $2683.07. So the trader controls $268,307 total. With this leverage, they use little of their own cash. They borrow the rest. At 100:1, 1% of capital means $2683.07. That makes 100% equal $268,307.

How MT4 Calculates Margin Level - Simple Margin Explanation for MetaTrader 4