Margin Calculator

Margin is the amount of money your broker requires you to deposit as collateral in order to open and maintain a leveraged trading position. It is not a fee or a cost — it is simply a portion of your account equity that is set aside and locked for the duration of the trade.

Leverage allows you to control a much larger position than your actual deposit. For example, with 1:100 leverage, a $1,000 margin deposit lets you control a $100,000 position. While this magnifies potential profits, it equally magnifies potential losses.

1. Calculate the trade value. Multiply the number of lots by the contract size (100,000 units for a standard lot) and then by the exchange rate of the base currency to your account currency (USD). For pairs where USD is the base currency (e.g., USD/JPY), the rate is 1.
2. Divide by the leverage ratio. The trade value divided by your leverage gives you the required margin. Higher leverage means a smaller margin requirement but greater exposure to risk.
3. Monitor your margin level. If your account equity falls below the required margin, you may receive a margin call from your broker, requiring you to deposit more funds or close positions.

Example: Trading 1 standard lot of EUR/USD with 1:50 leverage at an exchange rate of 1.08. The trade value is 1 × 100,000 × 1.08 = $108,000. The required margin is $108,000 / 50 = $2,160.

Note: The exchange rates used in this calculator are approximate and based on recent values. For live trading, always check the current rates with your broker, as they fluctuate constantly. Different brokers may also have varying margin requirements and leverage limits based on regulatory jurisdiction.