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's 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 positions. As a trader you can't use this amount of money after entering a trade transaction because you've 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 that you can use to execute new transactions. This is the sum of money in your account that has't yet been xauusd leveraged because ++1##you--haveyou've not yet opened a transaction with this money - this money also is very important for ++2you because it enables ++1you 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 % 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 % equals to $2683.07, if 1 % is equivalent to $2683.07 then 100 Percent is equal to $268,307
MetaTrader 4 Leverage Margin Calculation - What is Margin in MT4?
Gold Free XAUUSD Margin - $13,433.48
Free Margin that can be used to open new gold trade transactions in MT4 examples above.
Used Gold Margin - $2683.07
XAUUSD Margin which has already been used to open trades in MetaTrader 4 examples above.
To Learn and Know More about Leverage & Margin - Read the Topics Below:
Leverage and Margin Discussed
