Margin and Leverage

Gold Principal Protection Copy Trading uses a margin trading mechanism.

Users are not required to provide funds equal to the full position exposure. However, they must maintain sufficient USDT in the Gold Principal Protection Copy Trading Account to open and maintain positions.

Leverage reduces the initial margin required to establish a position, but it also amplifies account profits and losses. Even a relatively small movement in the XAUUSD price may have a significant effect on account equity and the margin level.

Gold Principal Protection Copy Trading uses tiered margin requirements. As position exposure increases, the applicable margin rate increases and the maximum available leverage decreases.

Margin is the amount required to open and maintain a trading position.

Margin is not a trading fee or a service charge collected directly by the platform. When a position is opened, the required margin is allocated from the account’s available funds.

After the position is closed and all profits, losses, and fees have been settled, any margin not used to cover losses or fees is released back to the account’s available funds.

Margin is used to:

Leverage allows an account to establish greater position exposure using a smaller amount of margin.

For example, leverage of 1:100 means that each 1 USDT of margin may support up to 100 USDT of position exposure.

The theoretical margin rates for different leverage levels are:

Higher leverage reduces the margin required to establish the same position, but it also reduces the account’s ability to withstand an unfavorable price movement.

The maximum leverage represents the leverage limit for the applicable position exposure tier. It does not mean that every order will be executed using that leverage.

XAUUSD position exposure is calculated using the entry price, trading volume, and contract size.

The calculation is:

Position Exposure = Entry Price × Trading Volume × Contract Size

The XAUUSD contract size is:

1 standard lot = 100 ounces of gold

For example:

The position exposure is:

3,000 × 0.1 × 100 = USD 30,000

Position exposure is the notional value used to calculate margin and risk levels. It is not the same as the amount invested by the user.

The required margin is calculated using the position exposure and the applicable margin rate.

The calculation is:

Required Margin = Position Exposure × Margin Rate

It can also be calculated using the leverage ratio:

Required Margin = Position Exposure ÷ Leverage Multiple

For example:

The required margin is:

30,000 × 0.05% = 15 USDT

This example is provided only to explain the margin calculation.

The actual margin used may be affected by the execution price, total position exposure, existing positions, platform risk rules, and system calculation precision.

Gold Principal Protection Copy Trading uses the following tiered margin requirements:

When the account’s gold position exposure increases and enters a higher tier, the system calculates the required margin according to the corresponding requirements.

The method used to calculate total exposure, determine the applicable tier, and calculate margin is subject to the system’s actual calculation.

Assume:

Position exposure:

3,000 × 0.1 × 100 = USD 30,000

Required margin:

30,000 × 0.05% = 15 USDT

Assume:

Position exposure:

3,000 × 0.3 × 100 = USD 90,000

Required margin:

90,000 × 0.05% = 45 USDT

Assume:

Position exposure:

3,000 × 1 × 100 = USD 300,000

Required margin:

300,000 × 0.10% = 300 USDT

These examples do not include the spread, commission, swap charges, slippage, unrealized profit or loss, or other fees.

When an account holds multiple XAUUSD positions, the platform calculates total exposure and margin usage based on the account’s overall positions.

Total position exposure may include:

If long and short positions exist at the same time, whether the exposures can offset each other is subject to the platform’s margin calculation rules.

Users should not assume that opposite positions will automatically offset risk or reduce margin requirements.

The copy trading amount is the amount allocated by the user to a gold trading strategy.

Margin is the amount allocated when the strategy opens and maintains an actual position.

These amounts are not the same.

For example, allocating 1,000 USDT to a strategy does not mean that the system will immediately use all 1,000 USDT as margin.

The actual margin used depends on:

The copy trading account should maintain sufficient available funds to absorb spreads, fees, and unfavorable market movements.

Used margin is the amount currently allocated to open positions.

Used margin generally increases when a new position is opened or the trading volume increases.

Free margin is the amount available for opening new positions or absorbing losses on current positions.

The general relationship is:

Free Margin = Account Equity − Used Margin

When open positions generate unrealized losses, account equity and free margin may decline.

If free margin is insufficient, new strategy orders may fail to copy.

The margin level measures the relationship between account equity and used margin.

The calculation is:

Margin Level = Account Equity ÷ Used Margin × 100%

For example:

The margin level is:

500 ÷ 250 × 100% = 200%

A lower margin level indicates greater account risk.

When the account margin level falls to or below 50%, the system initiates a Margin Close Out.

If the account holds multiple positions, the system closes the position with the largest loss first.

The close-out process continues until:

A Margin Close Out is triggered according to account equity, used margin, and the margin level.

The system does not guarantee a specific execution price for a forced closure. During rapid market movements, limited liquidity, or market gaps, the actual closing price may differ from the price available when the close-out was triggered.

The following circumstances may cause the account margin level to decline:

Users should continuously monitor account equity, used margin, free margin, and the margin level.

Users may reduce margin risk by:

Users should not rely on the system’s Margin Close Out as a substitute for active risk management.

“Gold Principal Protection Copy Trading” is the product name and refers to a specific protection arrangement. It does not mean that unrealized losses, insufficient margin, or forced position closures cannot occur during trading.

Users may still experience:

The scope, participation requirements, calculation method, and distribution standards for principal protection or a loss subsidy are subject to the official rules of the applicable strategy or campaign.

All leverage levels, margin rates, exposure tiers, calculation methods, margin close-out rules, and risk parameters are subject to the latest information displayed on the 100X Gold Principal Protection Copy Trading page and the system’s actual execution results.