Margin Call Trading

Safe Margin Level Gold Trading

A margin call is when a trader's account free margin drops below the required margin level that's set by broker. This means that because free margin in trader's account has dropped below required margin level then trader receives a margin call and some of the open trade transactions in trader's are closed by broker til this margin level moves back up to above required margin level.

Some of the open trade transactions may be closed or all of the open trade transactions may be closed if this margin call is automatically executed by broker.

What's Margin Requirements Level?

Now if Your Leverage is 100:1

When trading if you have $1,000 and use leverage of 100:1 & buy 1 standard lot for $100,000 your margin on this trade is the $1000 in your account, this is money which you will lose is your open trade moves against you the other $99,000 that's borrowed, the online broker will close out the open trade transactions automatically using a Margin Call once your $1,000 has been taken out by gold market.

But this is if your broker has set 0 % Trading Margin Requirements before liquidating your gold trade transactions automatically using the Margin Call.

What's 20% Trading Margin Requirements Level?

For 20 % margin requirement before liquidating your gold trade transactions automatically using what's known as Margin Call, then your trade transactions will be liquidated once your trading account balance reaches $200 - at $200 you will get a margin call.

What's 50% Margin Requirements Level?

For 50 % requirement of this level before liquidating your gold trade transactions automatically using what's known as margin call, then your trade transactions will be liquidated once your trading account balance reaches $500 - at $500 you will get a margin call.

What's 100% Margin Requirements Level?

If the broker sets 100% margin requirement of this level before stopping out your open trade transactions automatically using a Margin Call - at $1,000 you will get a margin call, then your trade transactions will be liquidated once your trading account balance reaches $1,000: Meaning trade transactions will liquidate as soon as you executes a one standard contract on this trading account because even if you pay 1 pips spread your account balance will get to $990 & the needed margin requirement % is 100% that's $1,000 dollars, therefore your orders will immediately get liquidated using a Margin Call once your margin requirement falls below 100 percent.

Most brokers do not set 100 % margin requirement, but there are those brokers that set 100 % margin aren't suitable for you at all, even those that set 50 % margin requirement are still not good-enough. Choose those set 20 percent margin requirements, in fact, those brokers that set their margin requirement at 20 % Margin Requirement are the best because the likely-hood they close your trade using a Margin Call is reduced as displayed in the examples above.

Safe Margin Level XAUUSD - Free Margin XAUUSD & Used Margin XAUUSD - Margin Level Percent Calculation Described