What's Margin Level Meaning in MT5 Platform?
Examples of what is margin on the MetaTrader 5 software & What's Margin, What is Required Margin, What's XAUUSD Equity, What's Used Margin and What's Free Gold margin.
XAU/USD Margin, Required Margin, Equity, Used Margin and Free Margin
What's Required Margin? : Required Margin is the money your online broker needs from you to start or keep a trade going. It's shown as a percentage.
What's Equity? : XAUUSD Equity is the full amount of money you have in your account for trading.
What constitutes Used Margin? Used Margin signifies the capital that has already been allocated to secure an open contract, which is the transaction currently listed in your active trade positions. Once a trade is opened, this specific money is locked: it is no longer available for the execution of any new trades.
In other words, since your online broker has established a position for you using the money you have borrowed, you must protect this utilized trading margin as collateral in order for you to continue to utilize the leverage that the online broker has given you.
What is Free Margin? In gold trading, Free Margin means the cash in your account available to start new trades. It is the money not yet used for leverage since no trade uses it. This Free Margin matters a lot. It lets you keep open trades running, as shown next.
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 - thenceforth the total amount that is controlled by the trader is: $268,307 dollars - 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 gold trader is using 1 % of their own capital, this 1 % is $2683.07 - if 1% is $2683.07 then 100% is $268,307 dollars

MetaTrader 5 Leverage Margin Calculation - What's Margin Level Meaning on MT5 Platform Software? - Gold MT5 Margin Calculation
Free Margin - $13,433.48
Free Margin that can be used by a trader to open new trade positions in MT5 just as is shown & displayed on the trading example illustration revealed above.
Used Margin - $2683.07
XAU/USD Margin that has been already used up by the trader to open trade transactions in MT5 software just as is shown & displayed on the trading example illustration revealed above.
To Read More about Leverage & Margin - Read the Learn Courses Below:
What's Margin Level in MT5 Explained
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