What is the Difference Between Equity & Margin in XAUUSD?
Equity is the total amount of capital in a xauusd trader's account while margin is amount of money required by your xauusd broker so as to allow you to continue trading with borrowed amount that you have borrowed after using gold trading leverage.
If there are no trades then the equity is equal to free margin - this free margin is the amount available for opening new gold trades and because there are no open gold trades then this free margin is equal to the equity in the trader's account.
When a trader opens new trade transactions using part of their equity then the margin used to open trades is known as used margin and the part of their equity that has not been used to open gold trades is known as free margin.
To Learn & Know More about Gold Leverage & Margin - Read the Topics Below:
XAUUSD Leverage and Margin Explained
