What is 1:1 Gold Leverage for $100 Dollars Mean?
Gold Leverage in gold trading is the amount of a xauusd trader's money compared to the borrowed trading capital that has been borrowed from the broker.
A leverage ratio of 1:1 in gold trading indicates that a trader is not using any leverage provided by their 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 trading gold with 1:1 leverage, you need to make your own rules for managing your gold trading money to protect your account's funds. These gold money management rules should be written in your gold plan. If you're new and want to open a $100 account but don't know what gold money management rules are, you can use the gold tutorials below to learn about gold equity management.
Developing effective money management rules for trading an account utilizing 1:1 Gold Leverage.
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.
For fund rules, stick under 10:1 borrowing. Pros often use 2:1 in accounts.
To Learn More about Leverage & Margin - Learn the Lessons Below:
XAU/USD Leverage & Margin Lesson Guide
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