What is a Metals Trading Margin Trading Account?
A Metals Trading Margin trading account is an account that allows metal traders to control a large amount of metals trade transaction using little of their own capital while borrowing the rest from their metal trading broker.
What's a Metals Trading Margin Trading Account?
Obtaining this margin account will enable you as a trader to borrow money from your metals broker to trade metals with.
The amount of borrowing power your metals trading account gives you what is called " metals trading leverage", and is usually expressed as a ratio - a ratio of 100:1 means you can control resources worth 100 times your deposit - metals trading leverage 100:1 means you can borrow 100 dollars from your metals broker for every $1 dollar in your metal trading account.
What this means in Metals Trading terms is that with 1% margin in your metals account you can control one standard lot or 1 contract worth $100,000 with a $1,000 deposit.
However, Trading this metals account increases both potential for profits as well as losses. In Metals Trading you can never lose more than you invest, 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 trading margin requirement level above that required. By using metals money management guidelines and keeping your used metals trading leverage below 5:1.
To Know More about Metals Leverage & Margin - How to Read the Topics Below:
Metals Leverage and Margin Course
