What Is Margin in Gold Trading?
Margin is the deposit your broker requires to open a leveraged position. It is not a fee, it is collateral held to cover potential losses.
Required Margin = (Lots × 100 oz × Price) ÷ Leverage
Example: 0.1 lots at $4710 with 1:100 = ($4710 × 10) ÷ 100 = $471
Margin Safety Tips
- Never use more than 20-30% of your account balance as margin
- Keep free margin well above your broker's margin call level
- UK retail traders are limited to 1:20 leverage on gold under FCA/ESMA rules