Trade Gold Trading

Can I Trade Gold Without Gold Leverage?

When trading gold, a trader doesn't have to use leverage if they pick the 1:1 leverage choice for their account. A 1:1 leverage means that the trader hasn't gotten funds from their broker and the trader will only trade using the funds they have put in their account.

This option of not leverage is not very popular because leverage is what makes the market popular among online traders - because with trading leverage gold option: for example 1:100 leverage option means a trader can borrow $100 dollars from their broker for each one dollar in their account, henceforth a trader with a deposit of $1,000 can borrow up to $100,000 dollars from broker - ($1,000*1:100 which-is equal to $100,000). One can then use this borrowed capital to open positions with.

Also, if there was no leverage then the market would be inaccessible to many traders as they would require a lot of capital before they start online gold trading, but with trading leverage xauusd traders can deposit a small amount of capital and use leverage to borrow the rest of the funds required to open a trade from their broker.

The money a trader puts into their account is called margin. This margin in the account is the funds traders use when they borrow from their online broker with leverage. If someone has a margin of $1,000 in their account, they use this $1,000 to get leverage from their broker and then start trades with the funds borrowed from their broker.

To read more on leverage and margin, see the lessons below.

Leverage & Margin Course

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Gold Broker