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 500 times, then the margin for one lot of XAUUSD is 1.

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

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