🔶 Gold Margin Requirement Calculator

Anchor Lot Size:

Fixed Lot Multiplier:

Hedge Levels:

Gold Price (XAUUSD):

Leverage: 1:50 1:100 1:200 1:500

Calculate

🧮 Understanding Margin and the Hedge Margin Calculator

Great! Let’s break it down so you and your students fully understand how margin works, how this calculator behaves, and how it relates to hedging with increasing lot sizes (Buy/Sell alternation).

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🔍 What Is Margin in Trading?

Margin is the amount of money required by your broker to open and hold a position.

Think of it like a security deposit — not the cost of the trade, but a portion your broker holds while you're in the trade.

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📐 Margin Formula (Used in This Calculator)

For Gold (XAUUSD):

Required Margin = (Contract Size × Lot Size × Price) ÷ Leverage

• Contract Size: 100 oz (fixed for gold)
• Lot Size: the trade size (e.g., 0.1 = 10 oz)
• Price: live gold price (editable in calculator)
• Leverage: e.g., 1:100 means you only need 1% margin

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⚙️ How This Calculator Works

Field	Meaning
Anchor Lot Size	Lot size of your first trade
Multiplier	Each hedge position increases in size (e.g. 3×)
Hedge Levels	How many levels of hedging to simulate (Buy/Sell)
Leverage	Account leverage (e.g. 1:100)
Gold Price	Current market price of XAUUSD

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✅ Example

With:

• Anchor Lot = 0.1
• Multiplier = 3
• Hedge Levels = 3
• Leverage = 1:100
• Gold Price = $3350

The calculator simulates:

Level	Direction	Lot Size	Price	Margin Required
0	Buy	0.10	$3350	$335
1	Sell	0.30	$3350	$1005
2	Buy	0.90	$3350	$3015
3	Sell	2.70	$3350	$9045

Total Margin = $13,400

Note: Direction (Buy/Sell) alternates, but margin depends only on size and price.

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💡 Why Use Increasing Lots in Hedge?

This is called a martingale or multiplier hedge strategy:

• As price moves against you, you add bigger counter-trades
• A small retracement can recover all losses and close in profit

BUT...

• 📈 Margin requirements increase fast
• 🧨 Risk of margin call rises quickly

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⚠️ Why the Current Price Matters

Yes — the current gold price directly affects margin.

• If gold is $2000 → lower margin
• If gold is $3500 → much higher margin

This is why the calculator lets users input their live gold price for more accurate planning.

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✅ Summary

• Lot sizes increase with each hedge level using the multiplier
• Margin = amount needed to open and hold each trade
• The calculator totals all margin across all hedge trades
• Current price is now editable for real-time accuracy
• Direction is for display only — margin depends on lot & price