Gold Principal Protection Copy Trading uses the margin level to monitor account risk.
The margin level represents the relationship between account equity and used margin. When open positions incur losses, account equity may decrease, causing the margin level to decline.
When the margin level falls to or below 50%, the system initiates a Margin Close Out and forcibly closes positions in the account.
“Gold Principal Protection Copy Trading” does not mean that the account cannot be subject to a Margin Close Out. Principal protection or a loss subsidy is a conditional protection arrangement and is not a substitute for margin management.
1 What Is the Margin Level
The margin level indicates whether the account has sufficient equity to maintain its current positions.
The calculation is:
Margin Level = Account Equity ÷ Used Margin × 100%
Item | Description |
Equity | Account equity, including the account balance and current unrealized profit or loss |
Used Margin | Margin currently allocated to all open positions |
Margin Level | The ratio of account equity to used margin |
A higher margin level generally indicates that the account has more capacity to withstand adverse price movements.
A lower margin level indicates greater account risk and closer proximity to the margin close-out threshold.
2 Account Equity
Account equity is the value of the account balance after including unrealized profit or loss from current positions.
The general relationship is:
Account Equity = Account Balance + Unrealized Profit − Unrealized Loss
For example:
Account balance: 1,000 USDT
Unrealized loss: 200 USDT
Account equity is:
1,000 − 200 = 800 USDT
If the loss on an open position continues to increase, account equity will continue to decline.
Account equity may also be affected by:
Realized trading profit or loss
Unrealized trading profit or loss
Trading commissions
Swap charges
Other settled fees
Funds transferred into or out of the account
Actual account equity is subject to the information displayed by the system.
3 Used Margin
Used margin is the amount of margin allocated to all current open positions.
Used margin is generally affected by:
XAUUSD entry price
Trading volume
Contract size
Position exposure
Applicable margin rate
Number of open positions
Margin tier
Platform risk rules
Used margin generally increases when a new position is opened or the trading volume is increased.
After a position is closed, the corresponding margin is released once the profit, loss, and applicable fees have been settled.
4 Margin Level Calculation Examples
Example 1 Margin Level of 400%
Assume:
Account equity: 1,000 USDT
Used margin: 250 USDT
The margin level is:
1,000 ÷ 250 × 100% = 400%
Example 2 Margin Level of 100%
Assume:
Account equity: 250 USDT
Used margin: 250 USDT
The margin level is:
250 ÷ 250 × 100% = 100%
Example 3 Margin Level of 50%
Assume:
Account equity: 125 USDT
Used margin: 250 USDT
The margin level is:
125 ÷ 250 × 100% = 50%
When the margin level falls to or below 50%, the system initiates a Margin Close Out.
These examples are provided only to explain the calculation. Actual account data is subject to the information displayed on the user’s account page.
5 Margin Close-Out Threshold
The margin close-out threshold for Gold Principal Protection Copy Trading is:
Margin Level ≤ 50%
When the margin level falls to or below 50%, the system initiates a Margin Close Out.
The system assesses the overall account risk rather than reviewing only one position.
Even if one position remains profitable, it may be closed during the subsequent risk management process if the overall account reaches the margin close-out threshold.
6 Margin Close-Out Sequence
If the account holds only one position, the system forcibly closes that position.
If the account holds multiple positions, the system closes the position with the largest loss first.
The general process is:
The system continuously calculates account equity and the margin level.
The margin level falls to or below 50%.
The system initiates a Margin Close Out.
The system identifies the position with the largest loss.
The system closes that position.
The system recalculates account equity, used margin, and the margin level.
If the margin level has not recovered, the system closes the next position with the largest loss.
The process continues until the margin level recovers or all positions have been closed.
The actual execution sequence and results are subject to the system’s processing.
7 Why the Position With the Largest Loss Is Closed First
Closing the position with the largest loss reduces the risk of that loss continuing to increase and releases the margin allocated to the position.
After the position is closed:
Its unrealized profit or loss becomes realized
Its used margin is released
Account equity is recalculated according to the final execution result
The account margin level is recalculated
If the released margin causes the margin level to return to the range required by the platform, the system may stop closing further positions.
If the margin level remains too low, the system continues processing other positions.
8 Is There a Fixed Liquidation Price
Gold Principal Protection Copy Trading does not use a predetermined liquidation price as the sole basis for assessing account risk.
The system primarily determines whether to initiate a Margin Close Out using:
Account equity
Used margin
Margin level
Current position profit or loss
Real-time market prices
An account may hold multiple positions, while its trading volume, margin usage, fees, and available funds may change continuously. Account risk therefore cannot be represented by one fixed price.
Users should treat the margin level displayed on the account page as the primary account risk indicator.
9 What Price Is Used for a Forced Closure
After a Margin Close Out is triggered, the system attempts to close the position using the market prices available at that time.
The actual execution price may be affected by:
XAUUSD market volatility
Bid-ask spread
Market liquidity
Order size
Market gaps
Rapid price movements
Server and network conditions
System order processing time
The system does not guarantee execution at the price displayed when the Margin Close Out was triggered.
During rapid market movements or periods of limited liquidity, the actual execution price may differ from the market price available at the time of the trigger.
10 Does the Margin Close Out Use a Mark Price
Gold Principal Protection Copy Trading does not use the mark-price liquidation mechanism commonly associated with digital asset perpetual contracts.
A Margin Close Out is primarily determined by account equity, used margin, and the real-time margin level.
Users should therefore monitor:
Account equity
Used margin
Free margin
Margin level
Current position profit or loss
Real-time XAUUSD price
Users should not apply the mark-price or estimated liquidation-price rules of other contract products to Gold Principal Protection Copy Trading.
11 Circumstances That May Trigger a Margin Close Out
The following circumstances may cause the margin level to decline and increase margin close-out risk:
XAUUSD moves rapidly against the position
The strategy opens multiple positions
The strategy increases its trading volume
Multiple positions incur losses at the same time
The user follows multiple strategies simultaneously
The bid-ask spread widens suddenly
An order experiences unfavorable slippage
An open position incurs swap charges
Trading commissions or other fees are deducted
The user transfers funds out of the copy trading account
Position exposure enters a higher margin tier
The market experiences a price gap
Major economic data causes sharp market movements
Liquidity in the international gold market declines
Users should monitor the account margin level continuously and should not assess risk using only the account balance.
12 Effect of Transferring Funds Out
Transferring funds out of the Gold Principal Protection Copy Trading Account may reduce free funds and account equity.
If positions remain open, a transfer may result in:
Lower free margin
A lower margin level
Failure to execute new copied orders
Greater proximity to the margin close-out threshold
A Margin Close Out of existing positions
Before transferring funds out, users should review:
Current positions
Unrealized profit or loss
Used margin
Free margin
Current margin level
Estimated margin level after the transfer
If the system determines that a transfer would create excessive account risk, the platform may limit the transferable amount.
13 Difference Between a Stop Loss and a Margin Close Out
A stop loss and a Margin Close Out are different risk control mechanisms.
Comparison | Stop Loss | Margin Close Out |
Set by | User, strategy, or system rule | Platform risk system |
Main purpose | Control the loss on a specified position or strategy | Prevent further deterioration of account margin risk |
Trigger basis | Price, loss amount, or loss percentage | Account margin level |
Trigger threshold | Set by the user or strategy | Margin Level at or below 50% |
Positions affected | A specified position or all copied positions | The position with the largest loss is processed first |
Guaranteed execution price | No | No |
Users should not rely on a Margin Close Out as a substitute for a stop loss.
An appropriate stop loss may reduce risk before the account reaches the margin close-out threshold.
14 Effect of a Margin Close Out on Copy Trading
When a copy trading account is subject to a Margin Close Out, the user’s actual result may differ from the strategy account.
Possible outcomes include:
The strategy account continues holding a position after the copied position has been forcibly closed
The copy trading account cannot copy new strategy orders
The copied volume differs from the strategy account volume
The actual loss after forced closure is higher than expected
Some positions are closed while others remain open
Later strategy orders still fail because of insufficient funds, even after the margin level recovers
Whether the copy trading relationship continues after a Margin Close Out is subject to the status displayed on the Gold Principal Protection Copy Trading page.
Users should check:
Whether copy trading remains active
Whether any positions remain open
Whether any pending orders remain
Whether available funds are sufficient
Whether copy trading should be stopped
Whether principal protection or loss subsidy eligibility has been affected
15 Margin Close Out and Principal Protection
“Gold Principal Protection Copy Trading” does not mean that the system will not perform a Margin Close Out.
Principal protection or a loss subsidy generally requires users to satisfy specified conditions, which may include:
Completing the required copy trading period
Maintaining the required principal amount
Not transferring principal out before the required date
Not stopping copy trading early
Complying with the strategy rules
Avoiding abnormal or prohibited activity
Submitting an application within the required period
Passing the applicable subsidy review
If the account is subject to a Margin Close Out, whether the resulting loss is covered by principal protection or a subsidy is subject to the official rules of the relevant strategy or campaign.
Whether trading commissions, spreads, swap charges, slippage, or losses resulting from a forced closure are covered is also subject to the official rules.
16 How to Reduce Margin Close-Out Risk
Users may reduce risk by:
Setting the copy trading amount according to their risk tolerance
Maintaining sufficient free funds in the account
Avoiding the use of all account funds as position margin
Setting an appropriate copy trading stop-loss threshold
Avoiding simultaneous exposure to too many strategies
Monitoring strategy positions and historical drawdown
Monitoring XAUUSD market movements
Reviewing major economic data release schedules
Accounting for spread widening and slippage risk
Accounting for swap charges and other trading fees
Checking the margin level before transferring funds out
Reducing risk promptly when the margin level declines
Reviewing account positions and fund records regularly
Adding funds may increase the margin level, but it cannot guarantee that losses or a Margin Close Out will be avoided.
17 Frequently Asked Questions
At What Margin Level Is a Margin Close Out Triggered
The system initiates a Margin Close Out when the margin level falls to or below 50%.
Will All Positions Be Closed at the Same Time
Not necessarily.
The system generally closes the position with the largest loss first and then recalculates the margin level. If the risk has not been resolved, it continues processing other positions.
Why Is There No Fixed Liquidation Price
Gold Principal Protection Copy Trading assesses risk using the account’s overall equity, used margin, and margin level.
Account funds, multiple positions, fees, and unrealized profit or loss change continuously. The risk therefore cannot be represented by one fixed price.
Will Funds Always Remain After a Margin Close Out
Not necessarily.
The final remaining funds depend on position losses, actual closing prices, slippage, spreads, trading fees, swap charges, and market conditions.
Does Adding Funds Guarantee That a Margin Close Out Will Not Occur
No.
Adding funds may increase the margin level. However, if the market continues moving against the position, the margin level may decline again and trigger a Margin Close Out.
Does Setting a Stop Loss Guarantee That a Margin Close Out Will Not Occur
No.
During a market gap, rapid price movement, or period of limited liquidity, a stop-loss order may not execute at the specified price. The account may still be subject to a Margin Close Out.
Can a Margin Close Out Affect Principal Protection Eligibility
Yes.
The effect depends on the principal protection conditions, subsidy scope, and review rules of the applicable strategy or campaign.
18 Important Information
The margin level measures the relationship between account equity and used margin.
The margin level is calculated by dividing account equity by used margin and multiplying the result by 100%.
A lower margin level indicates greater account risk.
A margin level at or below 50% triggers a Margin Close Out.
When multiple positions exist, the system closes the position with the largest loss first.
The system recalculates the margin level after each position is closed.
A forced closure does not guarantee a specific execution price.
Gold Principal Protection Copy Trading does not use a mark price as the basis for margin close-out decisions.
Users should not rely on a Margin Close Out as a substitute for active risk management.
Principal protection does not mean that the account cannot be subject to a Margin Close Out.
All margin levels, close-out thresholds, position processing sequences, risk parameters, and principal protection eligibility requirements are subject to the information displayed on the 100X Gold Principal Protection Copy Trading page, the applicable strategy rules, campaign rules, and the system’s actual execution results.