Margin calculator

How required margin is calculated

Margin is the share of the position's value your broker holds while the trade is open. It is not a cost or a loss: it is capital tied up that returns when you close. The higher the leverage, the smaller the fraction held.

Margin = (Units × Price) ÷ Leverage

A worked example

A standard EUR/USD lot at 1.0850 is $108,500 of notional value. At 1:30 leverage the margin held would be about $3,617; at 1:100, about $1,085. The position is identical in both cases: all that changes is how much capital stays locked.

Frequently asked questions

Does more leverage mean more risk?

Leverage on its own does not change what you lose if price moves against you: that is set by position size and stop distance. What it does change is how much free capital you keep, and therefore how much room you have before a forced close.

What is a margin call?

The broker's warning when free capital falls below a threshold, usually because open positions carry floating losses. If it keeps falling, the broker may close positions automatically. The exact thresholds are set by each broker.

Is the available leverage the same for everyone?

No. It depends on the broker, the instrument and the regulation that applies to you: in the European Union, for instance, retail and professional clients face different limits. Check the one on your account before taking any number as given.

Other calculators

• Position size (lots)
• Risk/reward (R:R)
• Pip value
• Market sessions
• Drawdown and recovery
• Break-even point