What is 1:1 Gold Leverage for $100 Dollars Mean?
Gold Leverage in gold trading is the ratio of a xauusd trader's money to that of the borrowed trading capital which has been borrowed from the broker.
1:1 gold leverage basically means that as a trader you're not using any trading leverage from your broker
Therefore if one has $100 in their account they will not have borrowed any trading leverage - using 1:1 leverage & hence after leverage of 1:1 they will have $100*1:1 leverage and this will be equal to $100 dollars of their own gold capital.
Capital Management Rules for Transacting with 1:1 Gold Trading Leverage
When gold trading with 1:1 gold leverage you should create your gold money management rules that you will use to manage your trading account capital. This set of gold money management guidelines/rules should be written on your xauusd/gold plan. If you're a beginner who wants to register a $100 dollar account & you don't know what gold money management rules are, you can use the learn gold tutorials below to learn about what is xauusd/gold equity management?
How Do I develop money management guidelines/rules for trading a 1:1 Gold Leverage Trade Account.
Gold with Leverage
The more leverage you use, the more the profit/loss
The less leverage you use the less the trading profit and loss
It's therefore better for you as a trader to use less leverage so as to reduce the risks involved. The greater the leverage ratio used the greater the risk. This is one of the leverage guidelines not to trade with more than 5:1 leverage.
In money management leverage rules: It is advisable to keep below 10:1 leverage which is also still high, most and many professional experienced money managers use 2:1 ratio in their trading account.
To Learn More about Leverage & Margin - Learn the Lessons Below:
XAU/USD Leverage & Margin Lesson Guide
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