What's Margin in MT4?

Example of what is margin in the MetaTrader 4 software and explanation of XAUUSD Margin, Margin Required, XAUUSD Equity, Used XAUUSD Margin and Free margin.

XAUUSD Margin, Margin Required, Equity, Used Margin and Free margin

What is Margin Required? : It is the amount of money your xauusd broker requires from you as a trader to open a position. It's expressed in percentages.

What's Equity? : It is the total amount of capital you've in your account.

What's Used XAUUSD Margin? : amount of money in your account which has been already used up when buying a xauusd lot, this contract is the one that's displayed in the open trade transactions. As a trader you can't use this amount of money after entering a trade transaction because you have already used it and it isn't available to you.

In other words, because your xauusd broker has opened up a trade transaction for you using the capital you have borrowed, you must preserve this usable margin for your account as a security to allow you to continue using this xauusd leverage he has given to you.

What's Free XAUUSD Margin? : amount in your account which you can use to execute new transactions. This is the sum of money in your account that has't yet been xauusd leveraged because you've not yet opened a transaction with this money - this money also is very important for you because it enables you to continue holding your open transactions as will be explained below.

Examples of What's Margin on MetaTrader 4

The gold margin example in MT4 Software below, the set gold leverage is 100 : 1, the xauusd margin which is 1 percentage% is $2683.07, hence the total amount controlled by the trader is: $268,307 - this is because with this leverage the trader has used little of his money and borrowed the rest of the amount, with this set at 100:1, the trader is using 1 % of their xauusd capital, this 1 percent% equals to $2683.07, if 1 % is equivalent to $2683.07 dollars then 100 % is equal to $268,307

How to Find XAUUSD Margin on MetaTrader 4 - Negative Free Margin MetaTrader 4 Software