Trade Gold Trading

Meta Trader 4 Margin Calculator

Examples of How to Calculate Margin in MT4

If leverage = 100:1

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

Margin required = 1 %

(1/100 *100= 1%)

"Trade Forex Trading - Simplify 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 gold margin requirement for your trading account.

The gold margin example on MT4 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 trader is: $268,307 - this is because with this leverage the trader has used little of his money and borrowed the rest of the money, with this set at 100:1, the trader is using 1 % of their capital, this 1 percentage% equals to $2683.07 dollars, if 1% is equal to $2683.07 then 100% is equivalent to $268,307

MT4 Margin Calculation - Calculating Margin in MetaTrader 4 PDF

Meta Trader 4 Margin Calculator

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

Then xauusd margin requirement on MetaTrader 4 Software - 1/50 *100= 2%

If you have $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 percentage of $50,000 - it is 2 %) that's your gold margin requirement in MetaTrader 4 Platform

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

Then the gold margin requirement on MetaTrader 4 Software - 1/20 *100= 5 %

If you have $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 MetaTrader 4 Platform

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

Then the xauusd margin on MetaTrader 4 Platform requirement is = 1/10 *100= 10%

If you have $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 MetaTrader 4 Platform

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

However, you should note that there is a difference between maximum leverage ( leverage given by your xauusd online broker which is the highest leverage you can trade with if you choose to) & used leverage ( leverage depending on the lots you've opened/open trade positions on MetaTrader 4 Platform). 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 given you 100:1 Maximum Leverage, but you only open a trade of $10,000 on MetaTrader 4 Platform then Used Leverage is:

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

10:1

You'll have used 10:1 Leverage in MT4 Platform, but your max leverage is still 100:1 Trading Leverage. This means that even if you're given 100:1 Maximum Leverage or 400:1 Maximum Leverage, you do not have to use all of it. It's best to keep your used trading leverage to a maximum of 10:1 while trading on MetaTrader 4 Software 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 XAUUSD Margin on the in MT4 Software, As long as you as a trader have Free margin on your MetaTrader 4 account then your open trades won't get closed by your xauusd online broker because this margin requirement will remain above the required level on the MT4 Software.

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

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

16.64 : 1 Used Leverage

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 broker to trade xauusd lots with.

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

What this means in Gold terms is that with 1% margin in your trading account you 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 as well as losses. In Gold you can never lose more than you deposit, losses are limited to your deposits & usually online brokers will close-out a trade position which extends beyond your deposit amount by executing a margin call. Traders must hence try and keep their trading margin requirement level which is above that which is required. By using equity management guidelines & keeping your used leverage below 5:1 ratio.

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