Leverage and margin
Why small accounts can trade gold
Leverage lets a small account control a big trade. It cuts both ways.
Example 1:100
| Your money | $100 |
| Leverage | 1:100 |
| You control | $10,000 |
With one to one hundred leverage, one hundred dollars controls ten thousand dollars of gold.
Margin
- Money your broker locks while a trade is open
- Margin call: not enough money left
- Stop out: broker closes your trades
Margin is the money your broker locks while a trade is open. If losses eat your margin, the broker closes your trades.
Safe use
- High leverage is fine
- Big lots are not
- Risk 1-2% per trade
High leverage is not the danger. Big lot sizes are. Risk one to two percent per trade.
Learn it, then trade it with signals.
GOFX AI scans gold around the clock and sends setups with entry, stop loss and take profit to your phone - every win and loss published.
GOFX AI scans gold around the clock and sends setups with entry, stop loss and take profit to your phone - every win and loss published.
Trading involves risk. Lessons are for education, not financial advice.