What is a Gold Trading Margin Account?
A Gold Trading Margin trading account is an account that allows xauusd traders to control a large amount of gold trade transaction using little of their own capital while borrowing the rest from their xauusd trading broker.
What is Gold Trading Margin Account?
Obtaining this margin trading account will enable you as a trader to borrow money from your gold broker to trade gold with.
The amount of borrowing power your gold trading account gives you what is called " gold trading leverage", and is usually expressed as a ratio - a ratio of 100:1 means you can control resources worth 100 times your deposit - gold trading leverage 100:1 means you can borrow 100 dollars from your gold broker for every $1 dollar in your xauusd trading account.
What this means in Gold Trading terms is that with 1% margin in your gold account you can control one standard lot or 1 contract worth $100,000 with a $1,000 deposit.
However, Trading this gold account increases both potential for profits as well as losses. In Gold Trading you can never lose more than you deposit, losses are limited to your deposits and usually brokers will close-out a trade which extends beyond your deposit amount by executing a margin call. Gold traders must therefore try to keep their margin requirement level above that required. By using gold trading money management guide-lines & keeping your used gold leverage below 5:1.
To Know More about Gold Leverage & Margin - Read the Topics Below:
Gold Leverage & Margin Tutorial
