Tools · Margin Calculator
Margin Calculator
See how much margin a position needs at a given price and leverage. Change the leverage to watch the requirement move. It runs in your browser and sends nothing anywhere.
Calculate required margin
The formula
How is forex margin calculated?
Margin is the deposit held to keep a leveraged position open. Required margin = lots × contract size × price ÷ leverage, shown in the quote currency. Higher leverage means less margin for the same position, and a larger position for the same margin.
Formula. Margin = lots × contract size × price ÷ leverage. Without the price, lots × contract size ÷ leverage gives the same figure in the base currency. If your account currency differs from the quote currency, multiply by the conversion rate.
Margin is not a fee and it is not the amount you can lose. It is part of your balance that is set aside while the trade is open. Your free margin is what is left to absorb losses and open other trades, so a position that uses most of your balance leaves little room.
How to use it
How do you use the margin calculator?
Choose an instrument, enter your lot size, check the price and leverage, then read the margin. The dropdown fills a round sample price, so replace it with the current price from your platform. Add a conversion rate if the quote currency is not your account currency.
- ✓ Pick the instrument and enter the lot size you plan to trade.
- ✓ Type the current price. The sample value in the box is only a placeholder number.
- ✓ Enter the leverage that applies to your account for that instrument.
- ✓ Compare the result with your free margin before you open the trade.
Worked example
How much margin does 0.5 lots of EUR/USD need?
Hypothetical example: 0.5 lots is 50,000 units. At a price of 1.1000 the position is worth 55,000 USD. With leverage of 1:100, the margin is 55,000 ÷ 100 = 550.00 USD.
Same position, lower leverage. Hypothetical example: at 1:30 the margin is 55,000 ÷ 30 = 1,833.33 USD. The market exposure has not changed, only the deposit set aside. Try both values in the calculator to see the difference for yourself.
Common mistakes
What mistakes do traders make with margin?
The biggest mistake is treating margin as the limit of your risk. Losses are measured against the full position, not the deposit. Other mistakes include using maximum leverage on every trade and forgetting that margin rules differ between instruments.
- ✓ Treating margin as the most you can lose. On leveraged CFDs, losses can exceed your deposit.
- ✓ Using all the leverage on offer. A small adverse move then uses up your free margin quickly.
- ✓ Assuming the same leverage applies to forex, metals, indices and crypto.
- ✓ Reading a quote-currency result as your account currency.
- ✓ Not checking the margin-call and stop-out levels that apply to your account.
Risk note. CFDs are leveraged products and losses can exceed your deposit. Results here are planning estimates from the numbers you type in. Read the Risk Disclosure before you trade.
Keep learning
Related guides and calculators
- ✓ What is leverage? Margin and leverage explained together.
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- ✓ Forex trading for beginners
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