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 capital which has been borrowed from the online broker.
1:1 gold leverage basically means that as a trader you are 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 Trading 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 equity money management guidelines should be written in your xauusd plan. If you are a beginner trader wanting to open a $100 dollar account & you don't know what gold money management rules are, you can use the learn gold courses below to learn about what is xauusd equity management?
How Do I develop money management guidelines for trading a 1:1 Gold Leverage Trading Account.
Gold with Trading Leverage
The more leverage you use, the more the profit/loss
The less leverage you use lesser the profit/loss
It's therefore better to use less leverage in order to minimize the risks involved. The greater the leverage option used the greater the risk. This is one of the leverage guide-lines not to trade with more than 5:1 leverage.
In money management leverage guide-lines: It is advisable to keep below 10:1 leverage which's also still high, most professional money managers use 2:1 ratio in their account.
To Learn More about Leverage & Margin - Read the Topics Below:
XAUUSD Leverage and Margin Guide
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