How To Trade GOLD – Risk Management Calculation

Let’s take GOLD (XAUUSD) as the example with 1:30 leverage for retail clients and the price 2360 USD per ounce.

1 lot of Gold (XAUUSD) = 100 ounces

0.01 lot position = 1 ounce

2360 x 1 ounce/ 30 (leverage) = 78.7 usd

It means that 79 usd of your balance will be used for the margin requirement.

Opening 0.01 lot position means that you buy/sell 1 ounce. Price movement for just 1 USD can potentially bring you 1 USD profit as well as the same drawdown.

0.10 lot position = 10 ounces

2360 x 10 ounces/ 30 (leverage) = 787 usd

It means that 787 usd of your balance will be used for the margin requirement.

Opening 0.10 lot position means that you buy/sell 10 ounces. Price movement for just 1 USD can potentially bring you 10 USD profit as well as the same drawdown.

1.00 lot position = 100 ounces

2360 x 100 ounces/ 30 (leverage) = 7867 usd

It means that 7867 usd of your balance will be used for the margin requirement.

Opening 1.00 lot position means that you buy/sell 100 ounces. Price movement for just 1 USD can potentially bring you 100 USD profit as well as the same drawdown.

NOTE: Do not forget about the Market 3-day swaps that are taken on Wednesdays. Always check Contract Specification in the Market Watch before the new asset trading.

Where to trade? You know 👉 https://track.pepperstonepartners.com/visit/?bta=38408&brand=pepperstone

https://preview.redd.it/tlrja6fgwz4d1.png?width=1342&format=png&auto=webp&s=bb3bee4226e8a3b1cb2a6eacbbc790b9fa327013

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