Gold margin calculator
How much margin an XAUUSD position ties up at your broker’s leverage — before you open it.
Margin Required
| Leverage | Margin |
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Margin = (lots × 100 × price) ÷ leverage. Price pre-fills from the live gold quote. Higher leverage lowers margin but does not reduce your risk.
How it works
Margin is the deposit your broker locks to keep a gold position open. It is a fraction of the full (notional) value of the position, set by your leverage.
At 1:500, a 0.10 lot at 2,350 needs about $47 — roughly ₹4,136. At 1:100 the same trade needs $235. The table shows every common leverage at once.
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Margin is not the same as risk
High leverage makes gold look cheap to trade: a few hundred rupees can hold a position worth lakhs. That is exactly the trap. Margin is only what it costs to open the trade — your real exposure is the full notional value, and that is what moves against you.
A 0.10 lot at 1:500 ties up about $47, but it still controls 10 oz of gold. A $10 price move is $100 either way — more than double the margin. Use this tool to confirm you can hold the position, then use the position size calculator to make sure the loss at your stop is one you can afford.
How gold margin works
Margin is the deposit your broker locks up to keep a gold trade open. It is not a fee, not a cost, and not your maximum loss. Think of it as a security deposit. The actual position size is much larger than the margin you put down.
The formula is simple:
Margin = (Lots × 100 × Gold Price) ÷ Leverage
For example, if gold is at $2,350 and you use 1:100 leverage, one standard lot (100 oz) has a notional value of $235,000. Your required margin is $2,350. Trade 0.10 lot and the notional drops to $23,500, so margin becomes $235. Lower leverage means more margin locked. Higher leverage means less margin locked, but the trade size stays identical.
Worked example: 1:100 vs 1:500
Let us take a 0.10 lot gold trade at $2,350. The notional value is 10 oz × $2,350 = $23,500. That is the amount of gold you control, regardless of leverage.
At 1:500 leverage, the margin required is $23,500 ÷ 500 = $47. In rupees, that is roughly $47 × 88 = ₹4,136.
At 1:100 leverage, the margin required is $23,500 ÷ 100 = $235. In rupees, that is roughly $235 × 88 = ₹20,680.
Notice the trade size did not change. Only the locked deposit changed. A trader with a small account might prefer 1:500 to free up cash. A conservative trader might prefer 1:100 to leave more buffer against losses. Both control the same 10 ounces of gold.
Free margin, used margin and margin calls
Your account balance splits into two parts once you open a trade. Used margin is the deposit locked by your broker for open positions. Free margin is the remaining cash available to open new trades or absorb losses.
If gold moves against you, your floating loss reduces equity. Equity is balance plus or minus open profit and loss. When equity falls too close to used margin, the broker issues a margin call. You must deposit more funds or close trades. If equity keeps falling, the broker triggers a stop-out. It closes your worst losing trades automatically to protect itself.
Example: You deposit $1,000. You open a 0.10 lot trade requiring $47 margin at 1:500. Your free margin is $953. If the trade loses $900, equity drops to $100. You are dangerously close to a margin call. The $47 margin is still locked, so you cannot use it to cover the loss.
Why margin is not your risk
A common mistake is thinking a small margin means a small risk. That is wrong. Margin is just the deposit. Your real exposure is the notional value of the gold you control.
Take the earlier 0.10 lot trade at $2,350. Margin at 1:500 is only $47. But you control 10 ounces of gold. If gold moves $10 against you, you lose $100. That is more than double your margin. A $23.50 move wipes out $235 — five times the margin.
This is why leverage can be dangerous. Low margin lets you open a position much larger than your account can realistically handle. Always size your trade by stop-loss distance and account risk, never by how little margin you need. A 1% account risk on a $1,000 account means you should risk only $10, which is a $1.00 move on a 0.10 lot.
Common questions
How is gold margin calculated?
Margin equals lots times 100 (the contract size) times the price, divided by your leverage. For 0.10 lots at a price of 2,350 with 1:500 leverage, that is (0.10 x 100 x 2,350) / 500, about $47.
Does higher leverage reduce my risk?
No. Higher leverage only lowers the margin needed to open a position. Your loss if the trade moves against you depends on the position size and the price move, not on leverage.
What leverage is common for gold in India?
International CFD brokers used by Indian traders often offer 1:100 up to 1:500 or more on gold. The tool lets you compare 1:100, 1:200, 1:500 and 1:1000 side by side.
What is notional value?
Notional value is the full market value of the gold you control: lots times 100 times the price. A 0.10 lot at 2,350 has a notional value of $23,500 even though the margin might be only $47.
What is the minimum margin required for gold trading?
Minimum margin depends on your broker's leverage and the gold price. With 1:500 leverage and gold at $2,350, a 0.01 lot (1 oz) needs only $4.70 margin. A 0.10 lot needs $47. Some brokers offer leverage up to 1:1000, reducing margin further to $2.35 for a 0.01 lot. But lower margin does not mean safer trading. Always check your broker's specific margin requirements and stop-out levels before opening a position.
How do I calculate margin in rupees for XAUUSD?
First calculate margin in USD: (Lots × 100 × Gold Price) ÷ Leverage. Then multiply by the USD to INR rate, roughly 88. For example, a 0.10 lot at $2,350 with 1:500 leverage gives $47 margin. Multiply $47 by 88 to get approximately ₹4,136. The exact rupee amount depends on the live exchange rate your broker or bank uses. Offshore CFD brokers typically hold margin in USD, so your rupee cost fluctuates with currency movements.
Does higher leverage mean lower risk in gold trading?
No. Higher leverage only reduces the margin deposit required. It does not change the notional value of the gold you control or the profit or loss per pip. A 0.10 lot always controls 10 ounces, whether you use 1:10 or 1:1000 leverage. A $1 move is always $10 on that position. Higher leverage simply lets you open the same trade with less locked capital, which can actually increase risk if you use the freed-up margin to open more positions.
What is a stop-out level in gold margin trading?
A stop-out level is the equity percentage at which your broker automatically closes losing trades. Most brokers set this between 20% and 50%. For example, if your used margin is $100 and stop-out is 50%, your equity must stay above $50. If equity falls to $50, the broker starts closing positions, usually the most losing one first. Stop-out protects the broker from your account going negative. It is not a guarantee you will lose only your margin.
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