Trade Gold Trading

Calculate Leverage Examples

How XAU/USD Leverage Increases Gold Profits & Loses?

Simplify: your capital is $1,000. With leverage, you control $20,000. So $1,000 is 5% of $20,000. That is your margin need.

If you've got a $1,000 gold account and your gold trading leverage is 100:1 you are able to buy Gold contracts that are $100,000 dollars.

With a $1,000 gold trading account and 50:1 leverage, you can buy gold contracts worth $50,000.

If you have a $1,000 gold account with 20:1 leverage, you have the ability to buy Gold contracts worth up to $20,000 dollars.

As illustrated in the example for beginners regarding leverage, utilizing greater leverage in gold trading can increase both potential profits and losses, while using less leverage results in reduced gains and losses.

As a trader, you should thus employ less leverage in your gold transactions in order to reduce and mitigate the hazards involved. The risks increase as the leverage ratio increases. One of the guidelines for trading leverage is to limit leverage to no more than a 5:1 ratio.

When trading gold with borrowed money: It's best to borrow very little, like less than 10:1, which is still a lot. Most experts only use 2:1, meaning they trade only 2 contracts for every $100,000 they have in their xauusd account.

How to Change Gold Leverage in MT4 Software Platform

How to Change Leverage on MT4 Platform Software - To update your gold trading leverage on MetaTrader 4, head to your broker's secure My Account page for XAU/USD. Log in, then find the leverage change option for your MT4 account. Pick the new XAUUSD leverage, confirm it, and your gold leverage shifts to that choice.

More lessons and tutorials can be found here:

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