How is Gold Trading Margin Calculated? Gold Trading Margin is equal to Used Gold Trading Margin added to Free Gold Trading Margin
XAUUSD Trading Margin = Used XAUUSD Trading Margin + Free XAUUSD Trading Margin
What's Used Gold Margin? : amount of money in your account that has already been used up when buying a gold lot, this contract is the one that is displayed in the open trades. As a trader you cannot use this amount of money after opening a trading transaction because you have already used it & it is not available to you.
In other words, because your gold broker has opened up a position for you using the capital you've borrowed, you must maintain this usable margin for your account as a security to allow you to continue using this gold trading leverage he has given you.
What is Free Gold Trading Margin? : amount in your trading account that you can use to open new trades. This is the amount of money in your account that hasn't yet been gold leveraged because you've not yet opened a trade with this money - this is also very important for you as a because it enables you to continue to hold your open trades as will be described below.
Example of How is XAUUSD Trading Margin Calculated in MT4?
The gold trading margin examples on MT4 gold trading Platform below, the set gold trading leverage ratio is 100:1, the gold trading margin is equal to gold trading used margin plus gold trading free margin.
MetaTrader 4 Gold Trading Leverage Margin Calculation
Gold Margin - $16,116.55
Gold Trading Margin is equal to Used Gold Trading Margin + Free Gold Trading Margin
$16,116.55 = $2683.07 + $13,433.48
$2683.07
Gold Trading Margin used to open trades in MetaTrader 4 software examples above
$13,433.48
Free Gold Trading Margin that can be used to open new xauusd trades on the MT4 platform example above.
Gold Trading Margin is equal to Used Gold Trading Margin + Free Gold Trading Margin
To Know More about Gold Leverage & Margin - Read the Topics Below:
Gold Leverage & Margin Tutorial
