MetaTrader 4 Metals Trading Margin Level : Example of How to Calculate Metals Leverage in MetaTrader 4 Software

Margin required in this case is 1,000 dollars (your money) if it is expressed as a percent of 100,000 dollars which you control it is:

If metals leverage = 100:1

1,000 / 100,000 * 100= 1%

Margin required = 1%

(1/100 *100= 1%)

'Trade Forex Trading - Please simplify because I am Beginner'

(Simplify - your metals trading capital is $1,000 after metals leverage you control $100,000 - $1,000 is what percent of $100,000 - it is 1 %) that's your metals trading margin requirement for your metal trading account.

The metals trading margin example illustrated and explained below, the set metal trading leverage ratio is 100:1, the metals margin which is 1% is $2683.07, therefore the total amount controlled by metals trader is: $268,307 - this is because with this leverage the trader has used little of his money and borrowed the rest, with this set at 100:1, the trader is using 1% of their trading capital, this 1% is equivalent to $2683.07, if 1% is equal to $2683.07 then 100% is $268,307

MT4 Metals Margin Level : Examples of How to Calculate Metals Leverage in MetaTrader 4 Platform

• If = 50:1 Metals Trading Leverage - Used Metals Trading Leverage

Then metals margin requirement = 1/50 *100= 2%

If you have $1,000,

1,000* 50 = $50,000.

1,000 / 50,000 * 100= 2%

(Simplify - your metals trading capital is $1,000 after metals leverage you control $50,000 - $1,000 is what percentage of $50,000 - it is 2%) that is your metals trading margin requirement

• If = 20:1 Metals Leverage - Used Metals Trading Leverage

Then the metals trading margin requirement = 1/20 *100= 5%

If you have $1,000,

1,000* 20 = $20,000.

1,000 / 20,000 * 100= 5%

(Simplify - your metals trading capital is $1,000 after metals leverage you control $20,000 - $1,000 is what percentage of $20,000 - it is 5%) that is your metals trading margin requirement

• If = 10:1 Metals Leverage - Used Metals Trading Leverage

Then the metals margin requirement is = 1/10 *100= 10%

If you have $1,000,

1,000* 10 = $10,000.

1,000 / 10,000 * 100= 10%

(Simplify - your metals trading capital is $1,000 after metals leverage you control $10,000 - $1,000 is what percentage of $10,000 - it is 10%) that is your metals trading margin requirement

What is The Difference Between Maximum Metal Trading Leverage & Used Metals Trading Leverage?

However, you should note that there's a difference between maximum metals trading leverage ( metals trading leverage given by your metals trading broker which is the highest metals leverage you can trade with if you select to) & used metals trading leverage ( metals trading leverage depending on the lots you've opened/open trades). One is the broker's (Maximum Metals Trading Leverage) and the other is metals trader's (Used Metals Trading Leverage). To explain this metals trading used metal leverage and maximum metals leverage concept we shall use the metal trading example above:

If your metals broker has given you 100:1 Maximum Metals Trading Leverage, but you only open a trade of 10,000 dollars then Used Metals Trading Leverage is:

10,000 dollars: 1,000 dollars (your money)

10:1

Your have used 10:1 Metals Leverage, but your maximum metals leverage is still 100:1 Metals Trading Leverage. This means that even if you are given 100:1 Maximum Metals Leverage or 400:1 Maximum Metals Trading Leverage, you don't have to use all of it. It is best to keep your used metals trading leverage to a maximum of 10:1 but you will still choose 100:1 maximum metals leverage option for your metals trading account. The extra metals leverage will give you what we call Free Metals Trading Margin, As long as you have some Free margin on your metals trading account then your open metal trades will not get closed by your metals trading broker because this margin requirement will remain above the required level.

When it comes to metals trading one of your rules: metals money management guidelines on your metals trading plan should be to use metals trading leverage below 5:1.

In the above MetaTrader 4 metals trading screenshot example, the trader is using $2683.07, total controlled amount is $268,307, but metals account equity is $16,116.55, therefore used metal trading leverage is ($268,307 divide by 16,116.55) = 16.64 : 1

16.64 : 1 Used Metals Trading Leverage

Metals Margin accounts allows traders to control a large amounts of metals trading units using leverage using little of their own capital while borrowing the rest

Obtaining this metals account will enable you to borrow money from the broker to trade metals trading lots with.

The amount of borrowing power your trade account gives you what is known as ' metals leverage', and is usually expressed as a ratio - a ratio of 100:1 trading leverage means you can control resources worth 100 times your deposit amount.

What this means in Metals Trading terms is that with 1% margin in your metals account you can control a trade worth $100,000 with a $1,000 deposit.

However, Trading this margin metals trading account increases both potential for profits as well as losses. In Metals Trading you can never lose more than you deposit, losses are limited to your deposits and usually brokers will close a transaction that extends beyond your deposited amount by executing a margin call. Metals traders must therefore try to keep their margin requirement level above that required. By using metals money management guide-lines and keeping your used metals trading leverage below 5:1.