Many people trade gold
$XAUUSD , with 500x leverage constantly on their lips, but when asked how to calculate position size, they look completely confused. Today, I’ll explain just one thing—how to calculate position size, stop-losses, and profit and loss under 500x leverage. No grand theories, just straight calculations.
With 500x leverage, how much margin does each trade use?
There is only one formula:
Margin = lot size × 100 × price ÷ 500
At a gold price of 4400, let’s run through a few calculations:
- 0.01 lots → 0.01×100×4400÷500 = $8.8
- 0.05 lots → 0.05×100×4400÷500 = $44
- 0.1 lots → 0.