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What's XAUUSD Gold Margin?

Margin is defined as the minimum capital sum mandated by your broker to permit you, the trader, to actively engage in trading using leveraged or borrowed funds within your account.

Put another way, the query "What is margin in XAUUSD?" can be explained as the capital necessary to sustain open positions, expressed as a percentage. With 100:1 leverage, if your account balance is $1,000, you control a notional position valued at $100,000.

Can you match a trader with $1,000 to one with $100,000? No way. Yet that is how it goes for the small trader. You start with $1,000 and handle $100,000 in gold trades. Where does the extra cash come from? You borrow it from your gold broker. They call this borrowing power. You put down your $1,000 as your share. The broker lends the rest against it. In short, it lets you control lots of money with just a bit of your own. Without this, trading XAUUSD would not pay off well. Sure, you can pick no borrowing at all. Go with a 1:1 ratio on XAUUSD. But profits would come slow, if at all.

Examples of how to calculate Margin:

XAUUSD Margin required in this instance is $1,000 dollars (your capital) 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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