How Do I Calculate Margin in Gold Trading
Gold trading margin is calculated based on a percentage. Percent ratio can be 1% gold trading margin for 100:1 gold trading leverage or 2% gold trading margin for 50:1 gold trading leverage or 10% gold trading margin for 10:1 leverage.
For 1% gold trading margin for 100:1 gold trading leverage it means
1:100 gold leverage option means a trader can borrow $100 dollars from their broker for each $1 dollar in their trading account:
Hence, what's the percentage of the $1 dollar in a trader's account compared to the $100 dollars borrowed from their broker? it is 1 %
1/100*100 = 1% Gold Margin
For 2% gold trading margin for 50:1 gold trading leverage it means
1:50 gold leverage option means a trader can borrow $50 dollars from their broker for each $1 dollar in their trading account:
Hence, what's the percentage of the $1 dollar in a trader's account compared to the $50 dollars borrowed from their broker? it is 2 %
1/50*100 = 2% Gold Margin
For 10% gold trading margin for 10:1 gold trading leverage it means
1:10 gold leverage option means a trader can borrow $10 dollars from their broker for each $1 dollar in their trading account:
Hence, what's the percentage of the $1 dollar in a trader's account compared to the $10 dollars borrowed from their online broker? it's 10%
1/10*100 = 10% Gold Margin
To Learn More about Leverage and Margin - Read the Topics Below:
Leverage & Margin Lesson
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