Definition of XAUUSD Maintenance Margin
The minimum margin requirement in xauusd will depend on the broker that you open a xauusd account with. Some brokers will set this level at 100%, others at 50% and others at 20% as the minimum required level.
What's XAUUSD Margin Requirement Level and How XAUUSD Margin Requirement Level is Calculated?
Now if Your Gold Leverage is 100:1
When trading if you have $1,000 & use xauusd leverage option of 100:1 & buy 1 standard lot for $100,000 your margin on this trade is the $1000 dollars in your xauusd account, this is money which you will lose if your open trade goes against you the other $99,000 that's borrowed, the broker will close the open xauusd trades automatically using a Gold Margin Call once your $1,000 has been taken by the gold trading market.
But this is if your xauusd broker has set 0% XAUUSD Margin Requirement before closing your gold trades automatically using this Margin Call.
What is 20% XAUUSD Margin Requirement Level?
For 20% margin requirement before closing your gold trades automatically using a Margin Call, then your trades will be closed once your account balance gets to $200 - at $200 you'll get a margin call.
What's 50% XAUUSD Margin Requirement Level?
For 50% requirement of this level before closing your gold trades automatically using a margin call, then your trades will be closed once your account balance gets to $500 - at $500 you'll get a margin call.
What's 100% XAUUSD Margin Requirement Level?
If the broker sets 100% margin percent level requirement of this level before automatically closing your open positions automatically using a margin Call - at $1,000 you'll get a margin call, then your gold trades will be closed once your account balance gets to $1,000: Meaning gold trades will close-out as soon as you execute a 1 standard lot on this xauusd account because even if you pay 1 pips spread your xauusd account balance will get to $990 and the needed margin requirement percentage is 100% i.e. 1,000 dollars, therefore your xauusd orders will immediately get closed using a Margin Call once your margin requirement falls below 100%.
Most xauusd brokers do not set 100% margin requirement, but there are those xauusd brokers that set their margin requirement level at 100 percent trading margin are not suitable for you at all, even those that set 50% trading margin requirement level are still not suitable. Choose those gold brokers that set their margin level requirement at 20% trading margin level, in fact, those gold brokers that set their margin requirement at 20% XAUUSD Margin Requirement are the best because the likely hood they closeout your trade using a Gold Margin Call is reduced as shown in the examples above.
To Learn & Know More about Gold Leverage & Margin - Read the Topics Below:
XAUUSD Leverage and Margin Explained
