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Margin Call Definition

A margin call is when a trader's account free margin moving below the required margin level that's set by xauusd broker. This means because free margin in trader's account has dropped below the required margin level then the trader receives a margin call & some of the open trade transactions on the trader's account are liquidated by the broker until this margin percentage level goes back up above the required margin percent area.

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

What is XAUUSD Gold Margin Requirements Level?

Now if Your Leverage is 100:1

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

But this is if your broker has set Zero percentage XAUUSD Gold Margin Requirements before liquidating your trade positions mechanically using this Margin Call.

What's 20 % Margin Requirements Level?

For 20 % margin requirement before liquidating your trade positions mechanically using what is known as Margin Call, then your trade positions will be stopped out once your account balance gets to $200- at $200 you will get and receive a margin call.

What is 50 % Margin Requirements Level?

For 50 percent requirement of this level before closing out your trade positions mechanically/automatically using what is known & referred to as margin call, then your trade positions will be closed out once your trading account balance reaches $500 - at $500 you'll get and receive a margin call.

What is 100 % Margin Requirements Level?

If the broker sets 100 Percent trading margin percent level requirement of this level before automatically closing your open positions mechanically/automatically using a margin Call - at $1,000 you will get and receive a margin call, then your gold trade positions will be closed once your account balance gets to $1,000: Explanation the trade positions will liquidate as soon as you as a trader executes 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 below $1,000 & the needed margin requirement percent is 100 % i.e. $1,000, therefore your open positions will immediately get liquidated using a Margin Call once your trading margin requirement falls below 100%.

Most brokers do not set 100 Percent margin requirement, but there are those online brokers that set their margin requirement level at 100 percent margin aren't suitable for you as a trader at all, even those who set 50 % margin requirement level still aren't suitable. Select those gold brokers that set their margin level requirement at 20 % margin level, in fact, those gold brokers that set their margin requirement at 20% XAUUSD Gold Margin Requirement are among some of the best because the likely hood that they close-out your trade position using a Margin Call is reduced and minimized like shown in the illustration above.

To Learn More about Leverage and Margin - Learn the Lessons Below:

Leverage & Margin Lesson

Study More Topics and Tutorials:

Forex Traders Seminar Gala

Forex Traders Seminar

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