See how much margin your broker will hold to open a gold position.
0.10 lots of gold at different leverage
At a gold price of $4,150, 0.10 lots (10 oz) is a $41,500 position. The margin held depends only on leverage; the profit or loss per pip ($1) doesn't change at all.
Leverage
Margin held
Typical for
1:20
$2,075.00
UK, EU and Australian retail (gold cap)
1:30
$1,383.33
Some regulated brokers
1:100
$415.00
Common offshore default
1:200
$207.50
Offshore, high risk
1:500
$83.00
Offshore, high risk
Margin, leverage and risk
Leverage lets you open a position worth far more than your deposit. That's what makes a 0.10-lot gold trade possible on a small account, and also what makes it dangerous: a $40 move against a 1-lot position is $4,000, whatever your margin was.
Size positions by the loss you can accept at your stop, not by how much margin you have free. The position size calculator does exactly that.
Questions
How is margin calculated for gold?
Margin = lots × 100 ounces × gold price ÷ leverage. One standard lot at $4,000 is a $400,000 position; at 1:100 leverage the broker holds $4,000 as margin.
Is margin the most I can lose?
No. Margin is a deposit the broker holds while the trade is open. You can lose more than the margin if price moves against you; your stop loss, not your margin, sets the loss.
What leverage is available on gold?
It depends on where your broker is regulated. In the UK and EU, retail gold leverage is capped at 1:20. Offshore brokers often offer 1:100 to 1:500, with correspondingly higher risk.
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