What's Margin Level Meaning in MT4?
Examples of what's margin on the MetaTrader 4 and What's Margin, What is Required Margin, What's XAUUSD Trading Equity, What's Used Margin & What's Free Trade margin.
Gold Margin, Required XAUUSD Margin, Equity, Used Margin and Free Margin
What is Required Margin? : Required XAUUSD Margin is the amount of money your broker requires from you to open a trade position. It's expressed in percent.
What is Trade Equity? : XAUUSD Equity is the total sum of capital you have in your trading account.
What is Used Margin? : Used Margin is the sum of money in your account that has already been used up when buying a trading contract, this trading contract is one that's highlighted in open trade positions. As a trader you can not use this amount of money after opening a trade because you have already used it & it is not available to you to open another trade with.
In other words, because your online broker has opened up a position for you using capital you have borrowed, you must maintain this used margin as a security so as to allow you to continue using the leverage the broker has given you.
What is Trading Free Margin? : XAUUSD Free Margin is the amount in your account that you can use to open new trade positions. XAUUSD Free Margin is the sum of money in your account that has not yet been leveraged because you've not yet opened a trade with this money - this Trading Free Margin is also very important for you because it enables you as a trader to continue holding your open trades as will be described below.
Example of What's Margin on MT4 Platform Software
The margin examples in MT4 below, the set leverage ratio option is 100:1, the margin which is 1 % is $2683.07 - hence the total sum controlled by trader is: $268,307 - this is because with this leverage a trader has used little of their own money and borrowed the rest from their online broker, with this leverage ratio set at 100:1, the trader is using 1% of their own capital, this 1 % is $2683.07 - if 1 % is $2683.07 then 100% is $268,307
MetaTrader 4 Leverage Margin Calculation - What's Margin Level in MT4? - What is Trading Margin Level Meaning in MT4? - Gold MetaTrader 4 Margin Calculation
Free Margin - $13,433.48
Free Margin that can be used by a online trader to open new trades in MetaTrader 4 as displayed on the above example.
Used Margin - $2683.07
XAUUSD Margin that has already been used up by the trader to open trades in the MetaTrader 4 as is shown on the above example.
To Learn & Know More about Leverage and Margin - Study the Learn Topics Explained Below:
What is Margin Level in MT4 Discussed
