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Margin Call Definition

A margin call is when a trader's account free margin goes below 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 and some of the open trade transactions in 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 be closed if this margin call is automatically executed by online broker.

What is XAUUSD Margin Requirements Level?

Now if Your Leverage is 100:1

When trading if you have $1,000 and use leverage option of 100:1 and buy 1 standard lot for $100,000 your margin on this trade is the $1000 dollars in your xauusd account, this is money which you'll lose if your open trade transaction goes against you the other $99,000 that is borrowed, broker will close 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 Zero percentage% XAUUSD Margin Requirements before stopping outliquidating your trades automatically using this Margin Call.

What's 20 percentage% Margin Requirements Level?

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

What is 50 percent% Margin Requirements Level?

For 50 percent requirement of this level before stopping out your trade transactions automatically using what is known as margin call, then your trade transactions will be liquidated once your trading account balance reaches $500 - at $500 you will get 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 automatically using a 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 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 dollars & the needed margin requirement percent% is 100 percentage% i.e. $1,000, henceforth your orders will immediately get closed using a Margin Call once your margin requirement falls below 100%.

Most brokers don't set 100 Percent margin requirement, but there are those brokers that set their margin requirement level at 100 percent margin aren't suitable for you as a trader at all, even those that set 50 percent% margin requirement level are still not suitable. Choose those xauusd brokers that set their margin level requirement at 20 % margin level, in fact, those gold 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 illustrated in the example above.

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

Leverage and Margin Tutorial

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Forex Traders Seminar Gala

Forex Traders Seminar

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