MT4 Gold Trading Margin Level Percent Calculator
Margin Level Gold Trading Calculation - MT4 Gold Trading Margin Level Percentage Calculation - Calculating Gold Trading Margin Examples in MetaTrader 4.
This learn gold trading tutorial will explain What is Gold Trading Margin Requirement in xauusd trading and how it's calculated on MetaTrader 4 platform.
Examples of How to Calculate Margin Level Percentage on MT4
If gold trading leverage = 100:1
1,000 / 100,000 * 100= 1%
Margin required = 1%
(1/100 *100= 1%)
"Trade Forex Trading - Please simplify because I am Beginner"
(Simplify - your gold trading capital is $1,000 after gold leverage you control $100,000 - $1,000 is what percent of $100,000 - it's 1%) that is your gold trading margin requirement for your xauusd trading account.
The gold trading margin examples on MT4 gold trading Platform below, the set gold trading leverage ratio is 100:1, the gold trading margin which is 1% is $2683.07, therefore the total amount controlled by gold trader is: $268,307 - this is because with this leverage the trader has used little of his money & borrowed the rest, with this set at 100:1, trader is using 1% of their capital, this 1% equals to $2683.07, if 1% is equal to $2683.07 then 100% is equal to $268,307
MetaTrader 4 Gold Margin Calculation - MetaTrader 4 gold trading margin level percentage calculator Examples
Now if Your Gold Trading Leverage is 100:1
When trading if you have $1,000 and use option 100:1 & buy 1 Mini lot for $10,000 your margin on this transaction is the $1000 dollars in your gold trading Mini account, this margin is the money that you will lose if your open trade transaction goes against you - the other $99,000 that is borrowed, the broker will close the open gold trades automatically once your $1,000 has been taken by the xauusd trading market.
But this is if your gold broker has set 0% Gold Trading Margin Requirement before closing your xauusd trades automatically.
For 20% margin requirement before closing your xauusd trades automatically, then your trade transactions will be closed once your trading account balance gets to $200
For 50% margin requirement of this level before closing your xauusd trades automatically, then your trade transactions will be closed once your trading balance gets to $500
If your gold broker sets 100% trading margin percent level requirement level before automatically closing your open trade positions, then your trades will be closed out automatically once your trading account balance gets down to $1,000 Dollars - Explanation the trade will be closed out as soon as you the trader executes it because even if you pay 1 pips spread your trading account balance will get to $990 & the needed percent is 100% i.e. 1,000 dollars, therefore your trade orders will immediately get closed out.
Most brokers don't set 100% requirement, but there are those brokers who set 100% aren't suitable for you at all, choose those set 50% or 20% margin requirements, in fact, those xauusd brokers which set their margin requirement at 20% are some of the best because the likely hood they closeout your trade is reduced as shown in the example above.
MetaTrader 4 Gold Trading Margin Level Percentage Calculation
In the above MT4 gold trading screen shot example, trader is using $2683.07, total controlled amount is $268,307, but gold trading account equity is $16,116.55, therefore used gold leverage is ($268,307 divide by 16,116.55) = 16.64 : 1
16.64 : 1 Used Gold Trading Leverage
The Margin is 600% which is 580% above the required 20% Margin requirement by the broker.
To know about this margin level which is calculated by your MetaTrader 4 software automatically - MetaTrader 4 Gold Trading Platform will display this as "Gold Trading Margin Requirement", This will be displayed as a percentage higher the percent the less likely your trades are to get closed.
For Examples if - (using a broker that requires 20% margin requirement)
Using 100:1 gold trading leverage
If gold leverage is 100:1 & you transact 10 Mini Lots, equals to $100,000
$100,000 dollars divide by 100:1, your used trading capital is $1000
Calculation:
= Capital Used * Percentage(100)
= $1,000/$1000 * Percentage(100)
Gold Trading Margin Requirement = 100%
Investor has 80% above what is the required margin level amount
Using 10:1
If gold leverage is 10:1 and you transact 1 Mini Lot, equals to $10,000
$10,000 dollars divide by 100:1, your used capital is $100
Calculation:
= Capital Used * Percentage(100)
= $1,000/$100 * Percentage(100)
Gold Trading Margin Requirement = 1000 %
Investor has 980% above what is the required margin level amount
Using 1:1 gold trading leverage
If gold trading leverage is 1:1 & you transact 0.1 Mini Lot, equals to $1,000
$1,000 dollars divide by 100:1, your used capital is $10
Calculation:
= Capital Used * Percentage(100)
= $1,000/$10 * Percentage(100)
Gold Margin Requirement = 10,000 %
Investor has 9800% above what is the required margin level amount
