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What's XAUUSD Gold Margin?

Margin is the amount of money required by your broker so as to allow you the trader to continue to trade with borrowed amount in your account.

In other words the question what's margin in XAUUSD? can be elaborated as money required to cover open trades & is denoted in percent. For 100:1, the amount you'll control is $100,000 if your account capital is $1,000 dollars.

Now can you compare a investing $1,000 with another one that is investing $100,000? Obviously Not. This is how it works: it takes you as a gold trader from that retail trader investing $1,000 to the investing $100,000. Where does this extra money come from? - You borrow it from your gold trading broker in what is simply known as Gold Leverage. This money which you as a gold trader borrow, you borrow it against the $1,000 dollar of your own which you deposit with your broker when you open a trading account. If you were to explain what this means - then it is the ability to control a big amount of money using very little of your own money & borrowing the rest. Otherwise, if you were trade XAUUSD without this leverage it would not be as profitable as it is, in fact you as a gold trader can still select not to use leverage, using the 1:1 xauusd leverage option but you wouldn't make money it would take too long to make any profit in xauusd.

Examples of how to calculate Margin:

XAUUSD Margin required in this case is $1,000 dollars (your money) if it is denoted as a % of $100,000 dollars which you control it is:

If leverage = 100:1

1,000 / 100,000 * 100= 1%

Gold Margin required = 1 %

(1/100 *100= 1%)

How to Calculate Margin - What is Margin?

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