What's Margin in MT4 Software?
Explanation of what is margin 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 your xauusd broker requires from you as a trader to open a position. It's denoted in percentages.
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 displayed and 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.
What's Free XAUUSD Gold Margin? : amount in your account which you as a gold trader can use to execute new trade transactions. This is the sum of money on your account that hasn't yet been xauusd leveraged because you've not yet opened a trade with this money - this money also is very important for you because it enables/facilitates you to continue holding your open trade positions as will be explained below.
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 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/gold capital, this 1 % equals to $2683.07, if 1 % is equivalent to $2683.07 dollars then 100 % is equal to $268,307
MetaTrader 4 Leverage Margin Calculation - What is Margin on the MT4 Platform?
Gold Free XAUUSD Gold Margin - $13,433.48 dollars
Free Margin that can be used to open new gold trade transactions on MT4 illustrations above.
Used Gold Margin - $2683.07
XAUUSD Margin that has already been used to open trades in MetaTrader 4 illustrations above.
To Learn and Know More about Leverage & Margin - Learn the Tutorials Below:
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