Margin Calculator

Leverage lets you control a large position with a fraction of its value — but that fraction, the margin, is locked the moment you open the trade. This calculator shows exactly how much margin a position needs so you know your free margin before you click buy.

Free calculator — no sign-up

The Formula Behind It

Margin = (Lots × Contract size × Price) ÷ Leverage
  • Lots — your trade size in standard lots.
  • Contract size — 100,000 units for one standard lot of a forex pair.
  • Price — the current market price of the pair.
  • Leverage — expressed as a ratio, e.g. 1:100.

How to Use This Calculator

  1. 1

    Select the currency pair and your account currency.

  2. 2

    Enter the trade size in lots and the current market price of the pair.

  3. 3

    Choose the leverage your account actually uses — 1:30 in the EU/AU and up to 1:500 offshore are common.

  4. 4

    Read the required margin and compare it with your account balance.

  5. 5

    Keep enough free margin to survive normal floating drawdown — then verify the number in your platform, which always shows the authoritative figure.

Worked Example

You buy 1 standard lot of EUR/USD at 1.0850 with 1:100 leverage in a USD account.

Notional value = 100,000 × 1.0850 = $108,500. Margin = $108,500 ÷ 100.

Result: $1,085.00 is locked as margin for as long as the position stays open.

Important Risk Note

Margin is only the entry requirement. Floating losses are deducted from free margin, and if your margin level falls below the broker's stop-out level, positions are closed automatically — often at the worst possible moment. Higher leverage means less margin, not less risk. Educational use only.

Frequently Asked Questions

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