Trade Forex Trading

What's XAUUSD Margin?

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

In other words the question what's margin in XAUUSD? can be described as money required to cover open trades and is expressed in percent. For 100:1, the amount you will control is $100,000 if your trading 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 online broker in what is simply known as Gold Leverage. This money which you as a xauusd trader borrow, you borrow it against the $1,000 dollar of your own which you deposit with your online 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 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's expressed as a percent% 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?

Study More Lessons & Topics:

Forex Market Traders Seminar Gala

Forex Market Traders Seminar

XAUUSD Broker