Gold Margin Call Meaning
What Happens When Free Gold Margin is Negative?
A xauusd margin call is when a xauusd trader's account free xauusd margin goes below the required xauusd margin level that is set by the broker. This means that because the free xauusd margin in the trader's account has gone below the required xauusd margin level then the trader gets a xauusd margin call & some of the open trades in the trader's are closed by the broker until this xauusd margin level goes back up to above required gold trading margin level.
Some of the open trades may be closed out or all of the open trades might be closed-out if this xauusd margin call is automatically executed by the broker.
What's XAUUSD Margin Requirement Level?
Now if Your Gold Trading Leverage is 100:1
When trading if you have $1,000 and use leverage of 100:1 & buy 1 standard xauusd lot for $100,000 your xauusd margin on this xauusd trade is the $1000 dollars in your gold account, this is money which you'll lose is your open xauusd trade goes against you the other $99,000 that's borrowed, the broker will close the open trades automatically using a Gold Margin Call once your $1,000 has been taken by the gold trading market.
But this is if your xauusd broker has set 0% XAUUSD Margin Requirement before closing your gold trades automatically using this XAUUSD Margin Call.
What is 20% XAUUSD Margin Requirement Level?
For 20% xauusd margin requirement before closing your gold trades automatically using a XAUUSD Margin Call, then your xauusd trade transactions will be closed once your xauusd account balance gets to $200 - at $200 you will get a xauusd margin call.
What is 50% XAUUSD Margin Requirement Level?
For 50% requirement of this level before closing your gold trades automatically using a xauusd trade margin call, then your trade transactions will be closed once your xauusd account balance gets to $500 - at $500 you will get a xauusd margin call.
What is 100% XAUUSD Margin Requirement Level?
If the broker sets 100% xauusd margin requirement of this level before closing out your open trades automatically using a Gold Margin Call - at $1,000 you will get a gold margin call, then your gold trades will be closed once your account balance gets to $1,000: Meaning the gold trades will close-out as soon as you execute a 1 standard xauusd lot on this xauusd account because even if you pay 1 pips spread your xauusd account balance will get to $990 & the needed xauusd margin requirement percent is 100% i.e. 1,000 dollars, therefore your xauusd orders will immediately get closed using a Gold Margin Call once your xauusd margin requirement falls below 100%.
Most xauusd brokers do not set 100% xauusd margin requirement, but there are those xauusd brokers that set 100% xauusd margin are not suitable for you at all, even those that set 50% xauusd margin requirement are still not suitable. Select those set 20% xauusd margin requirements, in fact, those gold brokers which set their margin requirement at 20% XAUUSD Margin Requirement are the best because the likely hood they closeout your trade using a Gold Margin Call is reduced as shown in the example above.
To Learn and Know More about XAUUSD Leverage and Gold Margin - Read the Learn XAUUSD Trading Topics Described Below:
XAUUSD Leverage and Gold Margin Explained
