What is Leverage?

The answer is leverage: the ability to control a large position with a much smaller deposit. The deposit is called margin. Margin is not a price you pay for the gold, and it is not a fee. It is closer to a security deposit, like the deposit you leave when renting a flat: money set aside to show you can cover losses. If the trade goes well, the margin is released back to you when you close. If it goes badly, losses are taken from your account.