Margin Level in XAUUSD Example
We shall first explain the various xauusd margin levels used in xauusd platforms and then explain what xauusd margin level is using an example on MetaTrader 4.
Gold Margin, Margin Required, Equity, Used XAUUSD Margin & Free margin
What's Margin Required? : It is the amount of money your xauusd broker requires from you to open a position. It is expressed in percents.
What's Equity? : It is the total amount of capital you have in your trading account.
What is Used XAUUSD Margin? : amount of money in your trading account which has already been used up when buying a xauusd lot, this contract is the one that is displayed in open positions. As a trader you can't use this amount of money after opening a trade because you have already used it & it is not available to you.
In other words, because your xauusd broker has opened up a position for you using the capital you have borrowed, you must maintain this usable margin for your trading account as a security to allow you to continue using this xauusd leverage he has given you.
What's Free XAUUSD Margin? : amount in your account that you can use to open new trades. This is the amount of money in your account that has not yet been xauusd leveraged because you have not yet opened a trade with this money - this money also is very important for you as a trader because it enables you to continue holding your open trades as will be explained below.
Example of What are the XAUUSD Margin Levels on MT4
The xauusd margin examples in MetaTrader 4 xauusd Platform below, the set xauusd trading leverage ratio is 100:1, the xauusd margin which is 1% is $2683.07, therefore 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, with this set at 100:1, the trader is using 1 % of their capital, this 1% equals to $2683.07, if 1% is equal to $2683.07 then 100% is equal to $268,307
MT4 XAUUSD Leverage Margin Calculation - How is XAUUSD Margin Level Calculated?
Used XAUUSD Margin - $2683.07
XAUUSD Margin used to open trades on the MT4 example above
Gold Free XAUUSD Margin - $13,433.48
Free Gold Margin that can be used to open new gold trades on the MT4 example above.
To Learn and Know More about Gold Leverage & Margin - Read the Topics Below:
Gold Leverage and Margin Explained
