How is Margin for Precious Metals Calculated?

The formula for calculating the margin of precious metals is: margin = lot size * market price * contract volume / leverage.

Take gold as an example. Assume that the market price of gold is: $1,806.00, the contract volume is 100 ounces, and the leverage is 500 times, then the margin for one lot of XAUUSD is $361.2:

  • Calculation formula: lot size (1) * market price (1,806) * contract volume (100) / leverage (500) = 361.2

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