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What Happens When Free XAUUSD Margin Hits Zero?

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

A margin call is when a xauusd trader's account free margin drops below the required margin level that's set by online broker. This means because free margin in trader's account has dropped below the required margin level then trader receives a margin call & some of the open trade transactions in the trader's are closed by broker til this margin level goes back up to above required margin level.

Some of the open trade transactions may be stopped out or all of the open trade transactions may be stopped out if this margin call is automatically executed by broker.

What's Gold Margin Requirements Level?

Now if Your Leverage is 100:1

When trading if you have $1,000 & use leverage of 100:1 & buy 1 standard lot for $100,000 dollars your margin on this trade is the $1000 in your xauusd account, this is the money that you will lose is your open trade moves against you & the other $99,000 dollars that's borrowed, the broker will close out the open trade transactions automatically using a Trading Margin Call once your $1,000 has been taken out by market.

But this is if your broker has set 0 percent Gold Margin Requirements before stopping out your trade transactions automatically using this Trading Margin Call.

What is 20 percent% Margin Requirements Level?

For 20 % margin requirement before stopping out your trade transactions automatically using a Trading Margin Call, then your xauusd trade transactions will be closed once your account balance gets to $200 - at $200 you'll get a margin call.

What is 50 percent% Margin Requirements Level?

For 50 % requirement of this level before liquidating your trade transactions automatically using what is known as margin call, then your transactions will be stopped out once your trading account balance reaches $500 - at $500 you will get a margin call.

What is 100 percentage% Margin Requirements Level?

If the broker sets 100 % margin requirement of this level before liquidating your open trade transactions automatically using a Trading Margin Call - at $1,000 you'll get a margin call, then your xauusd trade transactions will be closed once your account balance gets to $1,000: Explanation the trade transactions will stop out as soon as you execute a 1 standard contract on this account because even if you as a trader you pay $10 dollars spread your account balance will get to $990 & the needed margin requirement percent is 100 % that's $1,000, therefore your orders will immediately get stopped out using a Trading Margin Call once your margin requirement falls below 100%.

Most brokers don't set 100 % margin requirement, but there are those brokers that set 100 percent% margin are not good for you at all, even those that set 50% margin requirement are still not good. Select those set 20 percentage% margin requirements, in fact, those xauusd brokers which set their margin requirement at 20% XAUUSD Margin Requirement are some of the best because the likely-hood they close-out your trade using a Margin Call is reduced as displayed in the above example.

To Learn More about Leverage and Margin - Study the Learn Guides Described Below:

Leverage and Margin Described

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