Guide · 2 min read
Gold margin and leverage: what one lot of XAUUSD ties up
Short answer: Margin for gold is price times ounces per lot, divided by your leverage. With a 100-ounce lot at 1:20 leverage, each lot ties up a twentieth of what 100 ounces cost. Leverage changes how much money is set aside, not how much you can lose. That is set by your size and your stop.
Published: 24 October 2026.
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Margin is a deposit, not a fee. The broker sets it aside while the trade is open and gives it back when you close. What you can lose depends on how far the price moves against you, times your size.
The margin sum
Margin = gold price × ounces per lot × lots ÷ leverage.
An example, not today's price: if gold were at 3,000 dollars and one lot is 100 ounces, one lot is worth 300,000 dollars.
- At 1:20 leverage: 15,000 dollars of margin per lot.
- At 1:100: 3,000 dollars per lot.
- At 1:500: 600 dollars per lot.
For 0.10 lot, divide each line by 10. Your broker may use another contract size; the contract calculator and our guide to what a pip is worth on gold show how to check it.
Why leverage is not your risk
Take two traders who both buy 0.10 lot with a 10 dollar stop. Each loses 100 dollars if the stop is hit, whether the account runs at 1:20 or 1:500. High leverage only lets you open a bigger position than you should. Size from the stop first, with the position size calculator, then check that the margin fits.
Margin level, margin call and stop out
- Free margin: equity minus the margin in use. It is what is left for new trades and for losses.
- Margin level: equity ÷ used margin × 100%. MT5 shows it at the bottom of the Trade tab.
- Margin call: a warning level set by your broker.
- Stop out: a lower level where the broker starts closing your trades at the price of that moment.
The levels differ from broker to broker. Your account terms list them.
The quiet danger
A stop out does not wait for your stop. If gold jumps on news and your margin level falls far enough, trades close wherever the price is. Small positions with plenty of free margin are what keep you in charge of your own exits. Read how much to risk per trade for the other half of the sum.
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FAQ
How much margin do I need for one lot of gold?
Price times ounces per lot, divided by your leverage. With a 100-ounce lot, if gold were at 3,000 dollars, one lot is worth 300,000 dollars; at 1:20 leverage that needs 15,000 dollars of margin. These are example numbers; use your own price and terms.
What leverage do brokers offer on gold?
It depends on the broker and where you live. In the EU and the UK, retail accounts are limited to 1:20 on gold. Elsewhere brokers often offer far more. Your account terms and the symbol's Specification show your own.
Does higher leverage mean more risk?
Not by itself. Your risk is set by your position size and your stop. Leverage only decides how much margin is set aside, and so how big a position you are able to open.
What is margin level?
Equity divided by used margin, as a percentage. MT5 shows it in the Trade tab. When it falls to your broker's margin call level you get a warning; at the stop out level the broker starts closing trades.
What is a stop out?
When your margin level falls to the broker's stop out level, the broker closes your trades, usually the biggest loser first, until the level is back above it. It happens at the price of that moment, not at your stop.
How do I avoid a margin call on gold?
Size every trade from your stop and the money you accept to lose, keep total open risk small, and leave plenty of free margin for the moves gold makes around news.
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An educational tool. It is not investment advice. Trading leveraged products such as gold CFDs carries a high risk of losing money, and you can lose all of it.
BaroqTech makes software. It is not investment advice and it does not manage money. Trading leveraged products such as gold CFDs carries a high risk of losing money, and you can lose all of it. Results from a test or from a demo account do not predict results on a real account.
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