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.
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submitted by /u/FXgram_
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