Trade Gold Trading

Meta Trader 4 Margin Calculator

Examples of How to Calculate Margin in the MT4

If leverage = 100:1

1,000 / 100,000 * 100= 1%

Margin required = 1 %

(1/100 *100= 1%)

"Trade Forex Trading - Simplify a bit please because I am a Beginner"

(Simplify - your gold equity is $1,000 dollars after leverage you control $100,000 - $1,000 is what percent of $100,000? - it is 1%) that is your xau/usd margin requirement for your account.

The xau/usd margin example on MT4 Platform Software below, the set leverage is 100 : 1, the gold margin which is 1 percent is $2683.07, henceforth the total amount controlled by the Gold trader is: $268,307 - this is because with the leverage option the trader has used little of their own money and borrowed the rest of the money, with this set at 100:1, the Gold trader is using 1 % of their capital, this 1 % equals to $2683.07 dollars, if 1% is equal to $2683.07 then 100% is equal to $268,307

MT4 Margin Calculation - Calculating Margin in MT4 PDF

Meta Trader 4 Margin Calculator

  • If = 50:1 Leverage - Used Leverage and MT4 Margin Calculation

Then xauusd margin requirement on MT4 Software Platform - 1/50 *100= 2%

If you've got $1,000 dollars dollars,

1,000* 50 = $50,000.

1,000 / 50,000 * 100= 2 %

(Simplify - your gold equity is $1,000 dollars after leverage you now control $50,000 - $1,000 is what % of $50,000 - it is 2 %) that's your gold margin requirement in MT4 Platform Software

  • If = 20:1 Leverage Option - Used Leverage & Meta Trader 4 Margin Calculation

Then the gold margin requirement on MT4 Software Platform - 1/20 *100= 5 %

If you've got $1,000 dollars,

1,000* 20 = $20,000.

1,000 / 20,000 * 100= 5 percentage

(Simplify - your gold equity is $1,000 dollars after leverage you now control $20,000 - $1,000 is what % of $20,000 - it is 5 %) that's your gold margin requirement in MT4 Platform Software

  • If = 10:1 Leverage - Used Leverage and MT4 Margin Calculation

Then the xauusd margin on MT4 Platform Software requirement is = 1/10 *100= 10%

If you've got $1,000 dollars dollars,

1,000* 10 = $10,000.

1,000 / 10,000 * 100= 10 %

(Simplify - your gold equity is $1,000 dollars after leverage you now control $10,000 - $1,000 is what % of $10,000 - it is 10%) that's your gold margin requirement in MT4 Platform Software

What's Difference Between Maximum XAU USD Leverage and Used XAUUSD Leverage?

However, you should note that there is a difference between max leverage ( leverage given by your xauusd broker which is the highest leverage you as a trader can trade with if you select to) & used leverage ( leverage depending on the lots you've opened/open positions on MT4 Platform Software). One is the broker's (Maximum Leverage) & the other is trader's (Used Leverage). To explain this gold trading used leverage and maximum leverage concept we will use the xauusd example above:

If your online broker has assigned you 100:1 Maximum Leverage Option, but you only open/execute a trade of $10,000 on MT4 Platform Software then Used Leverage is:

$10,000 dollars: $1,000 (your money)

10:1

You'll have used 10:1 Leverage in MT4 Software Platform, but your max leverage is still 100:1 Leverage. This means that even if you are given 100:1 Maximum Leverage Option or 400:1 Maximum Leverage Option, you don't have to use all of it. It is best to keep your used trading leverage to a maximum of 10:1 while trading on MT4 Software Platform but you will still choose 100:1 maximum leverage ratio for your account. The extra trading leverage will give you as a trader what we call Free Gold Margin on the in MT4 Platform Software, As long as you as a trader have Free margin in your MetaTrader 4 account then your open trade transactions won't get closed by your xauusd broker because this margin requirement will remain above the required level on the MetaTrader 4 Software Platform.

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

In the above MT4 trading screen shot example, the gold trader is using $2683.07 dollars, total controlled amount is $268,307 dollars, but account equity is $16,116.55, therefore used leverage is ( $268,307 divided by $16,116.55 ) = 16.64 : 1

16.64 : 1 Used Leverage Option

Gold Margin accounts allows traders to control a large amounts of trading units using leverage using little of their own capital while borrowing the rest

Obtaining this MetaTrader 4 account will enable you to borrow money from the online broker to trade xauusd lots with.

Amount of borrowing power your account gives you what's known as " leverage", & is generally denoted as a ratio - a ratio of 100:1 leverage means you as a trader can control resources worth 100 times your deposited amount.

What this means in Gold terms is that with 1% margin in your trading account you as a trader can control a trade that is worth $100,000 dollars with a $1,000 dollars deposit.

However, Trading this margin account increases both the potential for making profits and also losses. In Gold you as a trader can never lose more than you deposit, losses are limited to your deposits & usually and generally online brokers will closeout a trade position which extends beyond your deposited amount by executing a margin call. Traders must hence try and keep their margin requirement level which is above that which is required. By using equity management rules & keeping your used leverage below 5:1 ratio.

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