Margin Liquidation Calculator
Safe Margin Level XAUUSD
A gold trading margin call is when a gold trader's account free gold trading margin goes below the required gold trading margin level that is set by the gold broker. This means that because the free gold trading margin in the gold trader's account has gone below the required gold trading margin level then the trader gets a gold trading margin call and some of the open trades in the gold trader's are closed by the gold broker until this gold trading margin level goes back up to above the required gold trading margin level.
Some of the open trades may be closed or all of the open trades may be closed if this gold trading margin call is automatically executed by the xauusd broker.
What is Gold Trading Margin Requirement Level?
Now if Your XAUUSD Leverage is 100:1
When trading if you have $1,000 and use leverage of 100:1 and buy 1 standard gold lot for $100,000 your gold trading margin on this trade transaction is the $1000 dollars in your gold account, this is the money that you will lose is your open gold trade transaction goes against you the other $99,000 that is borrowed, the gold broker will close the open transactions automatically using a Gold Trading Margin Call once your $1,000 has been taken by the xauusd market.
But this is if your gold broker has set 0% Gold Trading Margin Requirement before closing your xauusd trades automatically using this Gold Trading Margin Call.
What is 20% Gold Trading Margin Requirement Level?
For 20% Gold Trading Margin Requirement before closing your xauusd trades automatically using a Gold Trading Margin Call, then your gold trades will be closed once your balance gets to $200 - at $200 you will get a gold trading margin call.
What is 50% Gold Trading Margin Requirement Level?
For 50% requirement of this level before closing your xauusd trades automatically using a gold trading margin call, then your transactions will be closed once your balance gets to $500 - at $500 you will get a gold trading margin call.
What is 100% Gold Trading Margin Requirement Level?
If the broker sets 100% Gold Trading Margin Requirement of this level before closing your open positions automatically using a Gold Trading Margin Call - at $1,000 you will get a gold trading margin call, then your xauusd trades will be closed once your balance gets to $1,000: Meaning the xauusd trades will close out as soon as you execute a 1 standard gold lot on this xauusd trading account because even if you pay 10 dollars spread your gold trading account balance will get to below $1,000 and the needed Gold Trading Margin Requirement percentage is 100% i.e. 1,000 dollars, therefore your gold orders will immediately get closed using a Gold Trading Margin Call once your Gold Trading Margin Requirement falls below 100%.
Most gold brokers do not set 100% Gold Trading Margin Requirement, but there are those gold brokers that set 100% gold trading margin are not suitable for you at all, even those that set 50% Gold Trading Margin Requirement are still not suitable. Choose those set 20% Gold Trading Margin Requirements, in fact, those xauusd brokers that set their margin requirement at 20% Gold Trading Margin Requirement are some of the best because the likely hood they close out your trade using a Gold Trading Margin Call is reduced as shown in the examples above.
To Know More about XAUUSD Leverage and Gold Trading Margin - Read the Learn Gold Topics Below:
XAUUSD Leverage and Gold Trading Margin Explained
