Below are some examples explaining the formula for calculating the amount of margin required for trading precious metals:
Gold (USD) - XAUUSD | Silver (USD) - XAGUSD | Platinum (USD) - XPTUSD | Palladium (USD) = XPDUSD | |
Position Size: | 1 Standard lot | 1 Standard lot | 1 Standard lot | 1 Standard lot |
Account Leverage: | 1:100 | 1:100 | 1:100 | 1:100 |
Price: | $1,244.250 | $15.835 | $982.006 | $596.601 |
Margin Required: | 1% | 1% | 1% | 1% |
Total ounces per contract: | 100 | 100 | 100 | 100 |
Total exposure: | = 15.853 * 5000 = $79,265.00 | = 15.835 * 5000 = $79,175.00 | = $982.006 * 100 = $98,200.60 | = $596.601 * 100 = $59,660.10 |
Margin Requirement Calculation: | = 1% * $124,425.00 = $1,244.25 | = 1% * $79,265.00 = $791.75 | = 1% * 98,200.60 = $982.01 | = 1% * 59,660.10 = $596.60 |
Margin Requirement: | @ 1:400 leverage applied = $311.06 | @ 1:400 leverage applied = 791.75 * 0.25 = $197.93 | @ 1:400 leverage applied= 982.01 * 0.25 = $245.50 | @ 1:400 leverage applied = 596.60 * 0.25 = $149.15 |