What's Gold Margin Requirement?

Margin Level XAUUSD Calculator - MT4 Margin Level Percentage Calculator - Calculating Margin Example on the MetaTrader 4.

This learn xauusd guide will explain What is Gold Margin Requirements in gold trading & how it is calculated in the MT4.

Examples of How to Calculate Margin Level Percentage on MT4 Platform

If leverage = 100:1

1,000 / 100,000 * 100= 1 percent

Margin required = 1 percent

(1/100 *100= 1%)

'Trade FX Trading - Simplify please because I am a Beginner'

(Simplify - your equity is $1,000 after leverage you now control $100,000 - $1,000 is what percentage of $100,000 - it's 1 %) that's your account margin requirement for your trading account.

The margin examples on MT4 Platform Software below, the set leverage option is 100:1, the margin which's 1 percentage is $2683.07 dollars, henceforth the overall total amount controlled by the online trader is: $268,307 - this is because with this leverage the trader has used little of his money & borrowed the rest of the amount, with this set at 100:1 ratio option, the online trader is using 1 percentage of their account capital, this 1 percent equals to $2683.07 dollars, if 1 percent is equal to $2683.07 then 100 Percentage is equivalent to $268,307

Margin Level Meaning - How to Analyze Trading Account Margin Level on MT4 Software Platform

MT4 Gold Margin Calculator - MT4 margin level % calculator Example

Now if Your Leverage is 100:1

When trading if you as a trader have $1,000 dollars & use option 100:1 and buy 1 Mini lot for $10,000 your margin on this trade is $1000 dollars in your xauusd Mini account, this margin is the money that you will lose out if your open position moves against you - the other $99,000 that's borrowed, the broker will close the open xauusd trades mechanically/automatically once your $1,000 dollars has been taken out by market.

But this is if your broker has set 0 percent Margin Requirements before stopping out your positions mechanically/automatically.

For 20 % margin requirement before liquidating your trade transactions automatically/mechanically, then your positions will be stopped out once your account balance gets to $200

For 50 percent margin requirement for this level before liquidating your trade transactions automatically/mechanically, then your trade transactions will be stopped out once your account balance gets to $500

If your broker sets 100% margin % level requirement level before mechanically/automatically closing your open position transactions, then your positions will be closed out automatically/mechanically once your trading account balance gets down to $1,000 - Meaning the trade will be closed out as soon as you the trader executes it because even if you pay 1 pip spread your account balance will drop to $990 & the needed % is 100 % i.e. $1,000 dollars, henceforth your positions will immediately get stopped out.

Most brokers don't set 100 % requirement, but there are those brokers who set 100 % aren't suitable for you at all, choose those set 50 % or 20% margin requirements, in fact, those brokers who set their trading margin requirement at 20 % are some of the best because the likely-hood they close-out your trade position is minimized as shown in illustrations revealed above.

MT4 Margin Level Percentage Calculator

In the above MT4 xauusd screen shot example, the online trader is using $2683.07 dollars, total controlled sum is $268,307, but trading account equity is $16,116.55, therefore used leverage is ($268,307 dollars divided by 16,116.55) = 16.64 : 1

16.64 : 1 Used Leverage Ratio

The Margin is 600% which is 580% above the required 20% Margin requirement by the broker.

To know about this margin level which is calculated by your MT4 automatically - the MT4 Platform Software will show this as "XAU/USD Margin Requirements", This will be portrayed as a percentage the higher the percentage the less likely your trade positions are to get closed.

For Example if - (using a broker that requires 20 % margin requirement)

Using 100:1 gold leverage

If leverage is 100:1 & you transact 10 Mini Lots, equals to $100,000 dollars

$100,000 dollars divided by 100:1, used equity is $1000

Calculation:

= Capital Used * Percentage

= $1,000/$1000 * Percent(100)

XAU/USD Margin Requirement = 100%

Trader has 80% above the required margin level amount

Using 10:1

If leverage is 10:1 & you transact 1 Mini Lot, equals to $10,000

$10,000 divided by 100:1, used equity is $100

Calculation:

= Capital Used * Percent(100)

= $1,000/$100 * Percentage

XAU/USD Margin Requirement = 1000 percent

Trader has 980% above the required margin level amount

Using 1:1 gold leverage

If leverage is 1:1 & you transact 0.1 Mini Lot, equals to $1,000 dollars

$1,000 dollars divided by 100:1, used equity is $10

Calculation:

= Capital Used * Percentage

= $1,000/$10 * Percent(100)

XAU/USD Margin Requirement = 10,000%

Trader has 9800% above the required margin level amount

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What's Gold Margin Requirement?

Examples of How to Calculate Margin Level Percentage on MT4 Platform

Now if Your Leverage is 100:1