Margin Level in Gold Trading Example

We shall first explain the various gold trading margin levels used in gold trading platforms & then explain what gold trading margin level is using an example in MetaTrader 4.

Gold Margin, Margin Required, Equity, Used XAUUSD Trading Margin & Free margin

What's Margin Required? : It is amount of money your gold broker requires from you to open a position. It is expressed in percents.

What is Equity? : It is the total amount of capital you've in your account.

What's Used Gold Margin? : amount of money in your account that has already been used up when buying a gold lot, this contract is the one that is displayed in the open trades. As a trader you cannot use this amount of money after opening a trading transaction because you have already used it & it is not available to you.

In other words, because your gold broker has opened up a position for you using the capital you've borrowed, you must maintain this usable margin for your account as a security to allow you to continue using this gold trading leverage he has given you.

What is Free Gold Trading Margin? : amount in your trading account that you can use to open new trades. This is the amount of money in your account that hasn't yet been gold leveraged because you've not yet opened a trade with this money - this is also very important for you as a because it enables you to continue to hold your open trades as will be described below.

Example of What are the XAUUSD Trading Margin Levels in MT4

The gold trading margin examples on MT4 gold trading Platform below, the set gold trading leverage ratio is 100:1, the gold trading margin which is 1% is $2683.07, therefore the total amount controlled by gold trader is: $268,307 - this is because with this leverage the trader has used little of his money & borrowed the rest, with this set at 100:1, trader is using 1% of their capital, this 1% equals to $2683.07, if 1% is equal to $2683.07 then 100% is equal to $268,307

What is Gold Trading Margin Level in Gold Trading? - Gold Trading Margin Level in Gold Trading Example