What is the Gold Margin Requirement for 1:25 Leverage?
- If = 1:25 - Leverage
Then the trading margin requirement is = 1/25 *100= 4 %
If you have one thousand dollars,
1,000* 25 = $25,000.
1,000 / 25,000 * 100= 4%
Here's a quick breakdown: If you have $1,000 for trading gold and, with leverage, now control $25,000, your $1,000 is 4% of the total - that's your margin requirement for gold trading.
A 4% margin requirement means you need to deposit only 4% of the position's value to open a trade while using 25:1 leverage to borrow the remainder from your broker.
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