Trade Gold Trading

What's Difference Between Maximum Gold Leverage & Used Leverage?

Know the gap between max gold leverage from your broker - the top level you can pick - and used leverage from your open lots. The broker sets the max. You set the used one. Take the example from before to see it.

If your online broker lets you trade with 100 times more money than you have, but you only trade $100,000 lots, your gold trading leverage is:

100,000 compared to 10,000 (your capital).

10:1 Used Gold Leverage

You have used 10:1 leverage, but your max gold leverage is still 100:1. This means that even if you're given 100:1 Maximum gold leverage or 200:1 Maximum gold trading leverage, you do not have to use all of it. It is best to keep your used gold leverage to a maximum of 10:1 but you'll still choose 100:1 maximum leverage ratio for your account. The extra trading leverage gives you what we call Free Gold Margin, As long as you as a trader have Free margin on your account then your xauusd trades will not get closed by your broker because this margin requirement will remain above the requirement level.

In trading one of your gold trading rules: equity management guidelines on your gold plan should be to use leverage below 5:1.

Gold Leverage Example

The illustrations shown & described below, the set leverage is 100 : 1, the margin which is 1 % is $2683.07, henceforth the total amount controlled by the Gold trader is: $268,307 - this is because with this leverage option a trader has used little of his own money & borrowed the rest of the money, with this set at 100:1, the Gold trader is using 1 % of their capital, this 1 percentage equals to $2683.07 dollars, if 1% is equivalent to $2683.07 then 100% is equal to $268,307

Difference Between Maximum Gold Leverage & Used Gold Leverage

MT4 Platform

In the above screen shot image example, the gold trader is using $2683.07 dollars, total controlled amount is $268,307, but trading equity is $16,116.55 dollars, henceforth used gold leverage is ( $268,307 dollars divided by 16,116.55 ) = 16.64 : 1

16.64 : 1

In the trading account above even though the max gold trading leverage set xauusd trade leverage is 100:1, Used gold leverage is 16.64 : 1

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