What's Margin Level Meaning in MetaTrader 5?
Examples of what is margin on the Meta Trader 5 trading software and What's Margin, What is Required Margin, What's XAUUSD Equity, What's Used Margin and What is Free Gold margin.
XAUUSD Margin, Required Margin, Equity, Used Margin and Free Margin
What is Required Margin? : Required Margin is the amount of money your online broker requires from you to open a trade position. It is expressed in %.
What is Equity? : Gold Equity is the total sum of capital you have in your trading account.
What is Used Margin? : Used Margin is the amount of money in your account that has been already used up when buying a contract, this contract is the one that is displayed in open trade positions. You can't use this amount of money after opening a trade because you have already used it & it isn't available to you to open another trade with.
In other terms, because your online broker has opened up a position for you using the capital you've borrowed, you must preserve this used trading margin as a security to allow you to continue using the leverage the online broker has given you.
What is Free Margin? : Gold Free Margin is the amount of money in your trading account which you can use to open new trade positions. Free Margin is the amount of money in your trading account which hasn't yet been leveraged because you have not yet opened a trade with this equity - this Free Margin is also very crucial for you because it enables you to continue to hold your open trades as will be described below.
Example of What is Margin in Meta Trader 5 Platform
The margin example on MT5 below, the set leverage option is 100:1, the margin which is 1% is $2683.07 - therefore the total sum controlled by the trader is: $268,307 - this is because with this leverage a trader has used little of their own money and borrowed the rest from broker, with this leverage set at 100:1, a trader is using 1 % of their own capital, this 1% is $2683.07 - if 1% is $2683.07 then 100% is $268,307
MT5 Leverage Margin Calculator - What's Margin Level Meaning in MT5? - Gold MT5 Margin Calculation
Free Margin - $13,433.48
Free Margin that can be used by a online trader to open new trades in MetaTrader 5 as shown on the trading example above.
Used Margin - $2683.07
XAUUSD Margin that has been already used up by the trader to open trades in MT5 platform as shown on the trading example above.
To Learn More about Leverage & Margin - Read the Learn Courses Below:
What is Margin Level in MT5 Explained
