Margin Level in Metals Trading Example

We shall first explain the various metals trading margin levels used in metals platforms and then explain what metals trading margin level is using an example in MT4 platform.

Metal Trading Margin, Margin Required, Equity, Used Metals Margin & Free margin

What is Margin Required? : It is amount of money your metals broker requires from you to open a position. It is expressed in percentages.

What is Equity? : It is the total amount of capital you have in your trading account.

What is Used Metals Margin? : amount of money in your trading account which has already been used up when buying a metals lot, this contract is the one that's displayed in open trade positions. As a trader you can not use this amount of money after opening a trade transaction because you have already used it and it is not available to you.

In other words, because your metals broker has opened up a position for you using the capital you have borrowed, you must maintain this usable margin for your account as a security to allow you to continue using this metals leverage he has given you.

What's Free Metals Margin? : amount in your account that you can use to open new trade positions. This is the amount of money in your trading account that has not yet been metals leveraged because you've not yet opened a trade with this money - this is also very important for you as a trader because it enables you to continue holding your open trade transactions as described and illustrated below.

Example of What are the Metal Trading Margin Levels in MT4 Platform

The metals trading margin example in MT4 metals Software below, the set metal leverage is 100:1, the metals margin which is 1% is $2683.07, therefore the total amount controlled by the trader is: $268,307 - this is because with this leverage the trader has used little of his money & borrowed the rest, with this set at 100:1, the trader is using 1 % of their account capital, this 1% is equivalent to $2683.07, if 1% is equal to $2683.07 then 100% is $268,307

Metals Trading Margin Level in Metal Trading Described - Margin Level on Metal Trading Account Described