Gold Margin Call Level
What Happens When Free XAUUSD 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 required xauusd margin level then trader gets a xauusd margin call and some of the open trades in xauusd trader's are closed by the broker until this xauusd margin level goes back up to above required gold margin percent region.
Some of the open trades may be closed or all of the open trades might be closed if this xauusd margin call is automatically executed by xauusd broker.
What's Gold Margin Requirement Level?
Now if Your XAUUSD Leverage is 100:1
When trading if you have $1,000 & use leverage of 100:1 & buy a xauusd trade - your xauusd margin on this xauusd trade transaction is $1000 dollars in your xauusd 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 out the open trades automatically using a Gold Margin Call once your $1,000 has been taken by the gold 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 gold trades will be closed once your account balance gets to $200 - at $200 you'll get a xauusd margin call.
What's 50% XAUUSD Margin Requirement Level?
For 50% requirement of this level before closing your gold trades automatically using a xauusd margin call, then your open trades will be closed once your balance gets to $500 - at $500 you will get a xauusd margin call.
What's 100% XAUUSD Margin Requirement Level?
If the broker sets 100% xauusd margin requirement of this level before closing out your open trade positions 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 gold trades will close-out as soon as you execute a 1 standard xauusd lot on this xauusd account because even if you pay 10 dollars spreads your xauusd account balance will get to $990 & the needed xauusd margin requirement percentage is 100% that is 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 that 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 examples above.
To Learn & Know More about Gold Leverage & Gold Margin - Read the Learn XAUUSD Topics Below:
Gold Leverage & Gold Margin Described
