Trade Gold Trading

What Happens in After You Have no Free Margin Left?

If you run out of free margin in account you'll get a margin call and some or all of your open trade position transactions will be automatically closed out or stopped out by your broker.

A margin call forms when a trader's trading account free margin goes below the required margin level that is set by xauusd broker. This means that because free margin in the trader's account has gone below the required margin level then the trader gets a margin call and some of the open trades or all of the open trades in trader's are closed by online broker until this margin percentage level goes back up above the required margin percent area.

What is XAUUSD Gold Margin Requirements Level?

Now if Your Leverage is 100:1

When trading if you have $1,000 & use leverage ratio of 100:1 & buy 1 standard lot for $100,000 your margin on this trade transaction is the $1000 in your account, this is money which you will lose out if your open trade position goes against you and the other $99,000 that's borrowed, broker will close-out the open trade positions mechanically using a Margin Call once your $1,000 dollars has been taken by market.

But this is if your online broker has set 0 percent Gold Margin Requirements before closing out your gold trades mechanically/automatically using the Margin Call.

What's 20% Margin Requirements Level?

For 20 % margin requirement before closing out your gold trades mechanically using what's known as Margin Call, then your trade positions will be stopped out once your account balance gets to $200 - at $200 you will get and receive a margin call.

What's 50% Margin Requirements Level?

For 50 % requirement of this level before liquidating your xauusd trades mechanically using what's referred to as margin call, then your trade positions will be closed out once your trading account balance gets to $500 - at $500 you'll get and receive a margin call.

What is 100% Margin Requirements Level?

If the online broker sets 100% trading margin percent level requirement of this level before automatically closing your open positions mechanically/automatically using a margin Call - at $1,000 you will get and receive a margin call, then your trade positions will be closed out once your trading account balance reaches $1,000: Explanation the trade transactions will close and stop out as soon as you execute a one standard contract on this trading account because even if you as a trader you pay $10 spread your trading account balance will get to below $1,000 and the needed margin requirement percent% is 100 % i.e. $1,000, thenceforth your open positions will immediately get liquidated using a Margin Call once your trading margin requirement falls below 100%.

Most online brokers do not set 100% margin requirement, but there are those brokers that set their margin requirement level at 100 percent% margin are not good for you at all, even those who set 50% trading margin requirement level still aren't suitable. Choose those brokers that set their margin level requirement at 20 % trading margin level, in fact, those brokers that set their margin requirement at 20% XAUUSD Gold Margin Requirement are among some of the best because the likely hood that they close-out your trade position using a Margin Call is reduced and minimized as displayed and illustrated in the above example illustration.

To Learn More about Leverage and Margin - Learn the Lessons Below:

XAUUSD Leverage and Margin Guide

Learn More Tutorials & Courses:

Forex Traders Seminar Gala

Forex Traders Seminar

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