What's Margin Level Meaning in MT5 Platform?
Examples of what is margin on the MetaTrader 5 software & What's Margin, What is Required Margin, What's XAUUSD Equity, What's Used Margin and What's Free Gold margin.
XAU/USD Margin, Required Margin, Equity, Used Margin and Free Margin
What's Required Margin? : Required Margin is the amount of money your online broker requires from you to open/execute a trade position. It's denoted in percent.
What's Equity? : XAUUSD Equity is the total sum of capital that you've got in your trading account.
What's Used Margin? : Used Margin is the amount of money on your account that has already been used when opening a contract, this contract is the one that's shown and displayed in open position transactions. You can not use this amount of money after opening a trade position because you've already used it and it is not available to you to open/execute another trade with.
In other words, because your online broker has opened up a position for you using the capital you have borrowed, you must preserve this used trading margin as a security to allow you to continue using the leverage that the online broker has assigned you.
What's Free Margin? : Gold Free Margin is the amount of money on your account which you as a trader can use to open/execute new trades. Free Margin is the amount of money on your trading account which has not yet been leveraged because you have not yet opened a trade with this equity - this Free Margin is also very crucial for you because it enables you to continue to hold your open trade transactions as will be illustrated below.
Example of What is Margin in Meta Trader 5 Platform
The margin example on MT5 below, the set leverage option is 100:1, the margin which is 1% is $2683.07 - thenceforth the total amount that is controlled by the trader is: $268,307 dollars - this is because with this leverage a trader has used little of their own money and borrowed the rest from broker, with this leverage set at 100:1, a gold trader is using 1 % of their own capital, this 1 % is $2683.07 - if 1% is $2683.07 then 100% is $268,307 dollars
MetaTrader 5 Leverage Margin Calculation - What's Margin Level Meaning on MT5 Platform Software? - Gold MT5 Margin Calculation
Free Margin - $13,433.48
Free Margin that can be used by a trader to open new trade positions in MT5 just as is shown & displayed on the trading example illustration revealed above.
Used Margin - $2683.07
XAU/USD Margin that has been already used up by the trader to open trade transactions in MT5 platform software just as is shown & displayed on the trading example illustration revealed above.
To Read More about Leverage & Margin - Read the Learn Courses Below:
What's Margin Level in MT5 Explained
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