Can I Trade Gold Without Gold Leverage?
In gold, a trader can trade without leverage by choosing the 1:1 leverage option for their account. Leverage of 1:1 means that the trader hasn't borrowed any capital from their broker and the trader will only use the money they have deposited in their account for trading.
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 deposit a trader puts in their account is known as margin. This margin in the account is the money that traders used when borrowing from their online broker using leverage. If one has a margin of $1,000 in their account they will then use this $1,000 to obtain leverage from their broker and then open trades with the capital borrowed from their broker.
To Read More about Leverage & Margin - Read the Lessons Below:
Leverage & Margin Course
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