Calculate Trading Leverage Examples
How Gold Leverage Increases XAUUSD Trading Profits & Loses?
If you have a 1,000 dollar gold account with gold leverage 100:1 you can buy upto a maximum trading contracts lots which are equal to $100,000 dollars Gold contract lots
If you have a 1,000 dollar gold account with gold leverage 100:1 you can buy Gold contract lot which are equivalent to $100,000
If you have a 1,000 dollar gold account with gold leverage 50:1 you can buy Gold contract lots which are equivalent to $50,000
If you have a 1,000 dollar gold account with gold leverage 20:1 you can buy Gold contract lots that are equal to $20,000
From the above Gold Leverage for New Traders example you can see that the more gold leverage that you use the more the profit or loss and the less leverage you use the lesser the profit or losses.
It's therefore better to use less xauusd leverage in order to cap the risks involved. The greater the leverage option used the greater the risks. This is one of leverage guide-lines not to use more than 5:1 leverage option.
In gold leverage guide-lines: It is advisable to keep below 10:1 leverage which's also still high, most professional money managers use 2:1 meaning they trade only two lots for every $100,000 in their xauusd account.
How to Change Gold Leverage in MetaTrader 4 Trading Software
How to Change Gold Leverage in MetaTrader 4 - To change gold leverage that you are using on your MT4 platform you will have to go to your Secure My-Account area on your gold broker website, log in to this My Account Area & after sign in in go to change leverage option for your MetaTrader 4 account - then choose new gold leverage you as a trader want for your account and then confirm the new xauusd leverage option and your xauusd leverage will be changed to the new gold leverage option which you have just selected.
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