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 $1,000 dollars,
1,000* 25 = $25,000.
1,000 / 25,000 * 100= 4%
(Simplify - your trading funds is $1,000 after gold leverage you now control $25,000 - $1,000 is what percent of $25,000 - it is 4% margin) that's your gold trading margin requirement.
Your margin requirement is 4% - This means to open a trade you only need to deposit 4% of the position value & the rest of the money you'll borrow from your gold broker using the 25:1 trading leverage option.
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