What's Difference Between Equity and Margin in Gold Trading?
Equity is the total amount of capital in a gold trader's account while margin is amount of money required by your gold broker so as to allow you to continue trading with borrowed amount that you've borrowed after using xauusd trading leverage.
If there are no trades then the equity is equal to free margin - this free margin is the amount available for opening new xauusd trades and because there are no open xauusd trades then this free margin is equal to the equity in the trader's account.
When a trader opens new trade transactions using part of their equity then the margin used to open trades is known as used margin and the part of their equity that has not been used to open xauusd trades is known as free margin.
To Know More about Gold Leverage & Margin - Read the Topics Below:
Gold Leverage & Margin Tutorial
