Trade Gold Trading

XAUUSD Margin Call

What Happens When Your Free Margin in Your Account is Negative?

A gold margin call is when a trader's trading account free margin goes below the required gold margin level which is set by the online broker. This means that because the free margin in the trader's account has gone below the required gold margin level then the trader gets a margin call and some of the open trades in gold trader's are closed by the online broker until this gold margin level goes back upto above the required xauusd trading margin level.

Some of the open trades might be closed out or all of the open trades might be closed out if this gold margin call is automatically executed by the online broker.

What is Gold Margin Requirement Level?

Now if Your Leverage is 100:1

When trading if you have $1,000 dollars & use leverage option of 100:1 & buy a trade position - your margin on this gold trade is the $1000 dollars in your account, this is the money that you will lose is your open trade moves against you and the other $99,000 which is borrowed, the online broker will close out the open trades automatically using a Margin Call once your $1,000 has been taken by the trading market.

But this is if your online broker has set 0% Gold Margin Requirement before closing out your trades automatically using this Gold Margin Call.

What is 20% Gold Margin Requirement Level?

For 20% gold margin requirement before closing your trades automatically using what is known as a Margin Call, then your trades will be closed once your account balance gets to $200 - at $200 you'll get a margin call.

What's 50 percentage% Margin Requirement Level?

For 50% requisite of this level before stopping outstopping outliquidating your trades automatically using a trade position margin call, then your trades will be stopped out once your trading account balance gets to $500 - at $500 you'll get a margin call.

What's 100 percentage% Margin Requirement Level?

If the online broker sets 100 % margin requisite of this level before stopping out your open transactions automatically using a Margin Call - at $1,000 you will get a margin call, then your trades will be closed once your trading account balance gets to $1,000: Meaning the trades will close-out as soon as you execute a 1 standard gold lot on this account because even if you as a trader you pay $10 spread your trading account balance will get to $990 & the needed gold margin requirement percentage is 100 Percent that's $1,000, therefore your orders will immediately get closed using a Margin Call once your margin requirement falls below 100 percent.

Most online brokers do not set 100 % margin requirement, but there are those brokers that set 100 percentage% margin are not suitable for you at all, even those who set 50 percent margin requirement are still not suitable. Choose those set 20% gold margin requirements, in fact, those brokers which set their margin requisite at 20% XAUUSD Margin Requirement are some of the best since due to the likely hood they stop out-out your trade using a Margin Call is reduced as pictured in the above example.

To Learn More about Leverage & XAUUSD Margin - Study the Learn Topics Below:

Leverage & XAUUSD Margin Described

Get More Lessons:

Forex Traders Seminar Gala

Forex Traders Seminar

Gold Broker