What's Margin in MT4 Software?

Explanation of what margin means in the MT4 software and explanation of XAU/USD Margin, Margin Required, XAUUSD Equity, Used XAUUSD Gold Margin, and Free margin.

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

What is Margin Required? It is the amount of money that your xauusd broker needs you, the trader, to have to open a position. It is shown as a percentage.

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

What's Used XAUUSD Gold Margin? : amount of money on your account that has already been used when opening a xauusd lot, this contract is the one that's shown in the open position transactions. As a trader you can't use this amount of money after entering a trade position 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 position for you using the capital you've borrowed, you must preserve this usable margin for your trading account as a security collateral to allow you the trader to continue using this xauusd leverage he has given to you.

Free XAUUSD Gold Margin refers to: the monetary amount within your account that you, as a gold trader, are permitted to utilize for executing fresh trade transactions. This represents the capital currently in your account that has not yet been subject to leverage because you have not yet established a position with these funds - this liquidity is extremely important because it affords you the ability to maintain your currently open trade positions, as will be elaborated upon shortly.

Examples of What's Margin in the MetaTrader 4 Platform

The gold margin example in MT4 Platform 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 option the trader has used little of their own money and borrowed the rest of the amount, with this set at 100:1, the trader is using 1 % of their xauusd/gold capital, this 1 % equals to $2683.07, if 1 % is equivalent to $2683.07 then 100 % is equivalent to $268,307

How to Find XAUUSD Gold Margin on MetaTrader 4 Platform - Negative Free Margin MT4 Platform Software