Trade Forex Trading

What Happens When Your Free Trading Margin Gets To Zero?

What Happens When the Trading Account Free Margin is Negative?

A gold margin call is when a trader's trading account free margin falls below the required margin level which is set by broker. This means that because free margin in trader's account has gone below required margin level then trader receives a margin call & some of the open trade positions in trader's are closed by broker til this margin level goes back up to above required margin level.

Some of the open trades might and may be closed or all of the open trades might and may be closed if this margin call is executed automatically by broker.

What's Margin Requirements Level?

Now if Your Leverage is 100:1

When trading if you as a trader have $1,000 dollars and use leverage ratio of 100:1 and buy 1 standard lot/contract for $100,000 then your margin on this trade position is the $1000 in your account, this is money which you will lose out if your open trade position moves against you - the other $99,000 dollars that's borrowed, the broker will closeout the open trade positions transactions mechanically/automatically by using a Margin Call once your $1,000 dollars has been taken out by market.

But this is if your broker has set 0 % Trading Margin Requirements before stopping out your trade transactions automatically/mechanically by using this Margin Call.

What's 20 % Margin Requirements Level?

For 20% xauusd margin requirement before liquidating your trade transactions mechanically/automatically using what's known as a Margin Call, then your positions will be stopped out once your account balance reaches $200 - at $200 you'll get a margin call.

What's 50 % Trading Margin Requirements Level?

For 50 percent requirement for this level before liquidating your trade transactions mechanically/automatically using what is known as a margin call, then your trade transactions will be liquidated once your balance gets to $500 - at $500 you'll get a margin call.

What's 100% Margin Requirements Level?

If the broker sets 100% gold margin requirement for this level before stopping out your open position transactions automatically/mechanically by using a Margin Call - at $1,000 you will get a margin call, then your positions will be stopped out once your trading account balance reaches $1,000: Meaning trade positions will closeout as soon as you executes a one standard lot on this account because even if you pay one pips spread your account balance will get to $990 & the needed gold trading margin requirement % is 100% i.e. $1,000 dollars, therefore your open trade positions will immediately get liquidated using a Margin Call once your account margin requirement drops below 100 percent.

Most brokers don't set 100 % gold margin requirement, but there are those online brokers who set 100% gold margin are not good enough for you as a gold trader at all, even those that set 50 % gold margin requirement still are not good enough. Choose & Select those set 20 % margin requirements, in fact, those brokers who set their trading margin requirement at 20 % Margin Requirement are the best because the likely-hood that they close your position using a Margin Call is minimized as illustrated and shown on the examples revealed above.

To Learn and Know More about Trade Leverage & Gold Margin - Learn the Learn Courses Explained and Described Below:

XAU/USD Leverage & Gold Margin Explained with Example

More Topics and Lessons:

Forex Market Traders Seminar Gala

Forex Market Traders Seminar

XAUUSD Broker