MT4 XAUUSD Margin Level: Example of How to Calculate XAUUSD Leverage on MT4

Margin required in this case is 1,000 dollars (your money) if it's expressed as a percentage of 100,000 dollars which you control it is:

If xauusd leverage = 100:1

1,000 / 100,000 * 100= 1%

Margin required = 1%

(1/100 *100= 1%)

'Trade Forex Trading - Please simplify because I am Beginner'

(Simplify - your xauusd capital is $1,000 after xauusd leverage you control $100,000 - $1,000 is what percent of $100,000 - it is 1 %) that's your xauusd margin requirement for your gold account.

The xauusd margin example shown below, the set xauusd trading leverage is 100 : 1, the xauusd margin which is 1% is $2683.07, therefore the total amount controlled by the trader is: $268,307 - this is because with this leverage the trader has used little of his money & borrowed the rest, with this set at 100:1, the trader is using 1 % of their trading capital, this 1% equals to $2683.07, if 1% is equal to $2683.07 then 100% is equal to $268,307

MetaTrader 4 XAUUSD Margin Level: Example of How to Calculate XAUUSD Leverage in MT4

• If = 50:1 XAUUSD Leverage - Used XAUUSD Leverage

Then gold margin requirement = 1/50 *100= 2%

If you have $1,000,

1,000* 50 = $50,000.

1,000 / 50,000 * 100= 2%

(Simplify - your xauusd capital is $1,000 after xauusd leverage you control $50,000 - $1,000 is what percent of $50,000 - it is 2%) that is your xauusd margin requirement

• If = 20:1 XAUUSD Leverage - Used XAUUSD Leverage

Then the gold trading margin requirement = 1/20 *100= 5%

If you have $1,000,

1,000* 20 = $20,000.

1,000 / 20,000 * 100= 5%

(Simplify - your xauusd capital is $1,000 after xauusd leverage you control $20,000 - $1,000 is what percentage of $20,000 - it is 5%) that is your xauusd margin requirement

• If = 10:1 XAUUSD Leverage - Used XAUUSD Leverage

Then the gold margin requirement is = 1/10 *100= 10%

If you have $1,000,

1,000* 10 = $10,000.

1,000 / 10,000 * 100= 10%

(Simplify - your xauusd capital is $1,000 after xauusd leverage you now control $10,000 - $1,000 is what percent of $10,000 - it's 10 %) that is your xauusd margin requirement

What is the Difference Between Maximum Gold Leverage & Used XAUUSD Leverage?

However, you should note that there is a difference between maximum gold trading leverage ( xauusd leverage given by your gold trading broker which is the highest xauusd leverage you can trade with if you select to) & used gold trading leverage ( xauusd leverage depending on the lots you've opened/open trades). One is the broker's (Maximum XAUUSD Leverage) and the other is xauusd trader's (Used XAUUSD Leverage). To explain this xauusd used xauusd leverage and maximum xauusd leverage concept we shall use the xauusd example above:

If your xauusd broker has given you 100:1 Maximum XAUUSD Leverage, but you only open a trade of 10,000 dollars then Used XAUUSD Leverage is:

10,000 dollars: 1,000 dollars (your money)

10:1

Your have used 10:1 XAUUSD Leverage, but your maximum xauusd leverage is still 100:1 XAUUSD Leverage. This means that even if you're given 100:1 Maximum XAUUSD Leverage or 400:1 Maximum XAUUSD Leverage, you do not have to use all of it. It is best to keep your used xauusd leverage to a maximum of 10:1 but you will still select 100:1 maximum xauusd leverage option for your gold account. The extra xauusd leverage will give you what we call Free XAUUSD Margin, As long as you have some Free margin on your xauusd account then your open gold trades will not get closed by your gold trading broker because this margin requirement will remain above required level.

When it comes to gold trading one of your rules: gold money management rules on your xauusd plan should be to use xauusd leverage below 5:1.

In the above MetaTrader 4 xauusd screenshot example, the trader is using $2683.07, total controlled amount is $268,307, but xauusd account equity is $16,116.55, therefore used xauusd leverage is ( $268,307 divide by 16,116.55 ) = 16.64 : 1

16.64 : 1 Used XAUUSD Leverage

XAUUSD Margin accounts allows traders to control a large amounts of xauusd units using trading leverage using little of their own capital while borrowing the rest

Obtaining this xauusd account will enable you to borrow money from the broker to trade gold trading lots with.

Amount of borrowing power your trading account gives you what is called ' xauusd leverage", & is usually expressed as a ratio - a ratio of 100:1 leverage means you can control resources worth 100 times your deposit amount.

What this means in XAUUSD terms is that with 1 % margin in your gold account you can control a trade worth $100,000 with a $1,000 deposit.

However, Trading this margin xauusd account increases both potential for trading profits as well as losses. In XAUUSD you can never lose more than you invest, losses are limited to your deposits & usually online brokers will close-out a trade which extends beyond your deposit amount by executing a margin call. XAUUSD traders must therefore try to keep their margin requirement level above that required. By using xauusd money management rules and keeping your used xauusd leverage below 5:1.