Trade Forex Trading

MetaTrader 4 Margin Calculation Formula

Examples of what is margin in the MT4 & What's Margin, What's Required Margin, What's Gold Equity, What is Used Margin and What's Free Gold margin.

XAU USD Margin, Required Gold Margin, Equity, Used Margin and Free Gold Margin

What's Required Margin? : Required Gold Margin is the amount of money your online broker requires from you as a trader to open a trade position. It's denoted in percentage.

Definition of XAU/USD Equity: Gold Equity refers to the total cumulative capital present in your trading account.

What's Used Margin? : Used Gold Margin is the money from your trading account that's already being used when you start a trade, which is shown in open position deals. As a trader, you can't use this money after starting a position because it's already being used and you can't use it to start another trade.

In other words, because your online broker has opened up a trade position for you using trading capital you've borrowed, you as a Gold trader must maintain this used margin as a collateral to allow you as a Gold trader to continue using this trading leverage the broker has assigned you.

What is free margin for XAU/USD? Free margin in gold trading is the cash in your account ready for new trades. It covers unused funds not tied to open positions. Traders need this to hold trades open. The image below shows how it works.

Explanation of What's Margin on MetaTrader 4 Software Platform

The margin examples in MT4 show that if you use a 100:1 leverage, you need 1% of the total trade value as margin, which is $2683.07. So, the total value that the trader controls is $268,307. This happens because, with this much leverage, the trader only uses a small amount of their own money and borrows the rest from their broker. When using a 100:1 leverage, the trader is using 1% of their money, which is $2683.07. So, if 1% is $2683.07, then 100% is $268,307.

MT4 Margin Level Calculator - What is Trading Margin & Free Margin in MetaTrader 4 Platform Software?

MetaTrader 4 Leverage Margin Calculator - MT4 Margin Level Calculator - A margin calculator for MetaTrader 4.

Unused Funds - $13,433.48

Free gold margin lets traders open new positions in MT4. The image above illustrates this feature.

Used Margin - $2683.07 dollars

Gold Margin that a trader has already used to start trades in MetaTrader 4 can be seen in the example shown above.

Further Education on Margin and Leverage Concepts - Explore the Instructional Materials Below:

What is Gold Margin Percentage on MetaTrader 4 Explained

Study additional classes and courses at:

XAUUSD Broker