Trading Gold XAU/USD at FBS

To Arya Denta,

This depends on the trading size (lot) used. For example, if you trade XAU/USD with a size of 0.1 lot, here's how to calculate the fund's resilience:

First, we need to know how much margin is needed to open a position of 0.1 lot with a broker with leverage of 1:333. Here's the margin calculation:

• Margin = (Contract Size^ X Lot X Running Price XAUUSD) X Leverage
• Margin = (100 X 0.1 X 1340) X 1:333
• Margin = (13400) X 1 : 333
• Margin = (13400) : 333
• Margin = 40.24

^ Contract size for XAU/USD is 100

Therefore, it is known that the margin to open an XAU/USD position of 0.1 lot with leverage of 1:333 is USD 40.24.

After the margin is known, the next step is to calculate the free margin. Free margin is what is used as fund resilience. Free margin is known after reducing the balance with margin and additional costs (such as swap, commission, etc.). If you use an account that is subject to a commission of USD 35 per 1 lot, then the commission for a size of 0.1 lot is only USD 3.5. Here's the free margin calculation:

• Free Margin = Balance – (Margin + Commission)
• Free Margin = 1000 – (40.24 + 3.5)
• Free Margin = 1000 – (43.74)
• Free Margin = 956.26

So, this free margin of USD 956.26 is what is used as your fund resilience.

After knowing the fund resilience, the fund resilience is then converted into points to find out how many points can be held. Point value for the XAU/USD pair is USD 100 per lot. So the point value for a size of 0.1 lot is USD 10. Thus, with a fund resilience of USD 956.26, it can withstand a negative floating of ~95 points (free margin divided by point value). This means that if you open a buy position of 0.1 lot at a price of 1340 and the price drops by 95 points or touches a price of 1245, then at that price point your trading will be stopped because your funds have run out.

More or less, that's an overview of the margin and fund resilience calculation. The simulation calculation above is just an illustration to make it easier to understand. The actual calculation of the amount of fund resilience may be different (can be more or less), given the application of margin call and stop out levels from the broker.

Hopefully this helps.

Thank you, Erik, for the answer, your explanation is really great. I want to ask one more thing, with a capital of $1000 or more, is trading 1 lot of XAU/USD too risky?

To Arya Denta,

If you use the same account specifications (capital, leverage, commission) and then trade XAU/USD for 1 lot, is it risky? Let's find out the answer.

First of all, we need to know how much margin is needed to open a position of 1 lot with a broker with leverage of 1:333. Here's the margin calculation:

• Margin = (Contract Size X Lot X Running Price XAUUSD) X Leverage
• Margin = (100 X 1 X 1340) X 1:333
• Margin = (134000) X 1 : 333
• Margin = (134000) : 333
• Margin = 402.4

Therefore, the margin to open a 1 lot XAU/USD position with leverage of 1:333 is USD 402.4. After the margin is known, the next step is to calculate the free margin. If you use an account that charges a commission of USD 35 per 1 lot, then the free margin calculation is:

• Free Margin = Balance – (Margin + Commission)
• Free Margin = 1000 – (402.4 + 35)
• Free Margin = 1000 – (437.4)
• Free Margin = 562.6

So, this free margin of USD 562.6 is what is used as your fund resilience. After knowing the fund resilience, then the fund resilience is converted into points so that you can find out how many points can be held. The point value for the XAU/USD pair is USD 100 per lot. So, with a fund resilience of USD 562.6, it can only withstand a negative floating of ~5 points! (free margin divided by point value). This means that if you open a buy position of 1 lot at a price of 1340 and the price drops by 5 points or touches a price of 1335, then at that price point your trading will be stopped because your funds have run out. This will certainly be very risky, given the daily movement range of XAU/USD which can reach tens of points.

Hope this helps.

How to calculate the free margin? Why is the result like that? What does the ,a€ symbol mean, sir?

To Juwita Sari,

The explanation regarding the calculation of free margin has actually been reviewed in the comments above. In short, free margin is obtained from the calculation:

Free Margin = Balance – (Total Margin + Total floating PL)

Hopefully this can help.

How to find out the gold spread trading at FBS broker?

To Gildian Rahadian,

The easiest way to find the spread is to look at the spread nominal displayed in the Market Watch window on the Meta Trader platform. Or another way is to calculate manually the difference between the current bid and ask prices.

Hopefully this can help.

Is FBS still offering trading services in Indonesia?

To Yogi. H,

FBS brokers are still providing trading services for traders around the world, including Indonesia.

Hope this helps.

But why did the broker's site become Internet Positif, sis?

To Yogi. H,

That is because our government through the Minister of Communication and Information has blocked access to foreign brokers that are not regulated by Bappebti. However, the main website of the blocked broker can still be accessed if you use a VPN or Proxy network.

Hopefully this helps.