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What's Margin Level Meaning on MT4 Platform Software?

Margin examples on MetaTrader 4 include required margin, used margin, free margin, and equity for XAUUSD trades.

Gold Margin Status Review: Equity, Used Margin, Free Margin, and Required XAUUSD Margin

What is required margin? For XAUUSD gold, it's the cash your broker needs to open a trade. Brokers state it as a percentage.

What Is Trading Equity? XAUUSD equity means the full capital in your account.

What is Used Margin? Used margin is the cash in your account that gets locked when you open a trade. This trade shows up in your open positions list. As a gold trader, you can't touch that money anymore. It's tied up and unavailable for new trades after you place your order.

Put simply, since your broker facilitated the opening of a trade using borrowed funds on your behalf, you, the Gold trader, are obliged to maintain this employed margin as collateral. This collateral ensures the continued use of the leverage facility extended to you by the broker.

What is Trading Free Margin? : XAUUSD Free Margin is the amount on your account which you as a Gold trader can use to open new positions. XAU USD Free Margin means cash in your account not yet used for trades. No positions open with it yet. This amount helps traders keep open trades going, as noted later.

Explanation of What is Margin on MT4 Software Platform

Reviewing the margin calculations within MT4, if the leverage setting is 100:1, the required margin is 1%, equating to $2,683.07. Consequently, the total value controlled by the account holder reaches $268,307. This occurs because, with this leverage ratio, the trader uses only a minimal fraction of their own capital, with the bulk of the position size being borrowed from their online broker. Therefore, if 1% equals $2,683.07, the full 100% equates to $268,307.

Understanding the Concept and Calculation of Trading Margin Level within MetaTrader 4, with Illustrations

MetaTrader 4 Leverage Margin Calculator Queries - Defining the Margin Level on the MT4 Software - The Significance of Trading Margin Level in MT4 - Calculating Margin for Gold on MT4

Unused Funds - $13,433.48

Free Margin is the money a trader can use to start new trades on MetaTrader 4, as shown in the example above.

Used Margin amounts to 2683. 07 dollars

The XAUUSD Margin that a trader has already put up to start trades on MetaTrader 4 can be seen in the example shown above.

To gain deeper comprehension of Leverage and Margin concepts, review the educational topics detailed below:

What's Margin Level in MT4 Discussed

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