What's The Difference Between Maximum Silver Leverage & Used XAGUSD Trading Leverage?
You should note that there is a difference between maximum silver trading leverage ( silver trading leverage given by your broker which is the highest silver leverage you can trade with if you choose to) & used silver trading leverage ( silver trading leverage depending on lots you've opened/open trade positions). One is broker's (Maximum) & other is trader's (Used). To explain this concept we shall use xagusd trading example above:
If your silver broker has given you 100:1 Maximum xagusd leverage, but you only open trading lots of 100,000 dollars then Used silver trading leverage is:
100,000 dollars : 10,000 dollars (your money)
10:1 Used Silver Trading Leverage
You have used 10:1 xagusd leverage, but your maximum silver leverage is still 100:1. This means that even if you are given 100:1 Maximum silver trading leverage or 200:1 Maximum silver trading leverage , you don't have to use all of it. It is best to keep your used silver leverage to a maximum of 10:1 but you'll still choose 100:1 maximum leverage option for your silver trading account. The extra silver trading leverage will give you what we call Free Silver Margin, As long as you have some Free margin on your trading account then your xagusd trades will not get closed by your xagusd trading broker because this margin requirement will remain above required level.
When it comes to trading xagusd trading one of your silver trading rules: silver money management guidelines on your silver trading plan should be to use below 5:1.
XAGUSD Trading Leverage Example
The example explained and shown below, the set silver leverage is 100 : 1, the margin which is 1% is $2683.07, therefore the total amount controlled by silver 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 capital, this 1% is equal to $2683.07, if 1% is equal to $2683.07 then 100% is $268,307
What's The Difference Between Maximum Silver Leverage & Used XAGUSD Trading Leverage?
In the above image example, the trader is using $2683.07, the total controlled amount is $268,307, but account equity is 16,116.55, therefore used silver leverage is ( $268,307 divide by 16,116.55 ) = 16.64 : 1
16.64 : 1
In the silver trading account above even though maximum silver trading leverage set xagusd trade leverage is 100:1, Used silver leverage is 16.64 : 1
