Commodities

Trading Commodity CFDs on MT4

Trade a wide range of commodity CFDs using one of the most popular commodity trading platform – MT4. Commodities are one of the most heavily traded and closely-watched products in global markets. Using MT4, you can trade commodities such as:

Gold

Gold

Oil

Oil

Silver

Silver

Leverage Levels

At GO Markets, we offer different leverage based on our clients’ preference and trading ability.
Please refer to the available leverages based on the account types.

Available LeverageProduct
30:1Major currency pairs
20:1Non-major currency pairs, gold and major equity indices
10:1Commodities other than gold and non-major equity indices
5:1Individual equities and any underlying assets not otherwise mentioned

Margin Requirement

Margin Requirement is an initial deposit required to maintain open trading positions. A portion of your trading account funds will be set aside as a margin deposit and this will be dependent on your leverage setting.
To help you understand how margin requirement in forex trading works, we have prepared two examples below:

Example 1

Margin requirement for one standard contract position in EUR/USD at 1.15000 with a leverage of 1:30 is calculated as follows:
Margin = (1 * 100,000 * $1.1500) / (30) = $3,833.33

Example 2

Margin requirement for one standard contract position in EUR/JPY at 122.760 with a leverage of 1:30 is calculated as follows:
Margin = (1 * 100,000 * $122.760) / (30) = JPY$409,200

Assuming your MT4 account is denominated in USD, we will need to convert the margin requirement into USD:
Assuming the rate for USD/JPY is 109.725
Margin = $122.760 / 109.725 = $1118.79

Margin Call

It is important for traders to understand the meaning of Margin Call before they trade. Margin Call is a measure set by brokers to alert traders prior to their account funds falling below the Margin Requirement. This prevents liquidation of open positions due to insufficient Margin Requirement.

At GO Markets, Margin Call is set at 80%, therefore, if your Equity (Balance – Open Positions Profit/Loss) falls below 80% of the margin required to maintain your positions, a notification within MT4 will alert you to make an additional deposit to maintain your open positions.

Stop Out Level

After Margin Call, you should understand the meaning of Stop Out Levels. If you are unable to maintain sufficient funds in your account after hitting the Margin Call level, and your account funds depreciates to the Stop Out level, your positions will be closed automatically to prevent further losses which might put you into negative.

At GO Markets, Stop Out level is set at 50%.