How do I calculate the required margin for Gold, Silver, Platinum and Palladium trades?
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