Trade Gold Trading

What is 1:300 Trading Leverage for $100 Mean?

Trading 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 broker.

For example 1:300 gold leverage means that for every dollar one has in their account they have borrowed 300 from their xauusd broker. Hence if one has $100 in their account they will have borrowed using 1:300 leverage and hence after leverage of 1:300 they will have $100*1:300 leverage and this will be equal to $30000 dollars capital.

Trading Leverage is use of borrowed funds in gold trading so as to trade much bigger volumes so as to increase profit potential of trades.

1:300 gold leverage basically means that as a trader you get $300 for every $1 in your xauusd account.

1:300 Trading Leverage for $100 Account

In XAUUSD, a small deposit can control a much larger trade this is called Trading Leverage, which gives traders ability to earn more profits on opened trades, and at the same time keep risk capital to a minimum.

A trader will transact on borrowed capital, having $100 trader can borrow the rest using a leverage option such as 1:300 - meaning that one borrows $300 dollars for every 1 dollar they have in their xauusd account, henceforth in total they will control a total of $30000 dollars without having to deposit all of it - this is how leverage works in xauusd.

Leverage is expressed in forms of a ratio, for Examples 1:300, means the broker with give a trader $300 Dollars for every 1 dollar that the trader has.

Gold Margin is the sum of money required by your online broker to allow you to continue trading with leveraged amount. Gold Trading Margin is amount you deposit so as to open a account with. If you deposit $100 dollars then that's your margin.

With leverage it's possible for retail traders to trade the market. Trading Leverage of 1:300 means that for every dollar which you deposit, the broker will give you $300 dollars. This also means that in converse the broker requires you to maintain a margin of $1 Dollar for every $300 Dollars that they give you so that to let you continue controlling the borrowed amount of capital that they have given you for trading.

Gold Trading Margin Example:

If you deposit $100, & the broker gives you leverage of 1:300 then it means you now have $100*(1:300) = $30000 Dollars which you can transact with.

Capital Management Rules for Trading with 1:300 Trading Leverage

When gold trading with 1:300 gold leverage you should develop your equity management rules that you'll use to manage your xauusd account capital. This set of money management guidelines should be written in your plan. If you're a beginner wanting to open a $100 dollar xauusd account and you don't know what funds management guidelines are, you can use the learn courses below to learn about what's equity management?

How Do I come up with money management guidelines for trading a 1:300 Leverage Trading Account.

Gold with Trading Leverage

The more xauusd leverage you use, the greater the profit/loss

The less xauusd leverage you use lesser the profit/loss

It is henceforth better to use less leverage in order to cap the risks involved. The greater the leverage option used the greater the risks. This is one of leverage guide-lines not to use more than 5:1 leverage option.

In money management leverage guide-lines: It is always recommended to stay below 10:1 which is still high, most professional funds managers use 2:1 ratio in their account.

To Learn More about Leverage and Margin - Read the Topics Below:

Leverage and Margin Tutorial

Study More Lessons and Tutorials:

Forex Traders Seminar Gala

Forex Traders Seminar

Gold Broker