Margin Calculator
Calculate the required margin for any forex or metals trade based on your leverage and lot size.
Margin requirements are calculated using approximate rates. Actual requirements may vary by broker and account type.
What Is Margin in Forex Trading?
Margin is the amount of capital required in your account to open and maintain a leveraged trading position. It acts as collateral — a good-faith deposit — rather than a fee.
When you trade with leverage (e.g., 1:100), you control a position worth 100 times your margin. With 1:100 leverage on a standard EUR/USD lot (100,000 units worth ~$108,500), your required margin would be approximately $1,085.
Margin Formula
Required Margin = (Notional Value of Position) ÷ Leverage. For example, with a $100,000 position at 1:100 leverage, the margin is $1,000.
Margin Call vs. Stop Out
A margin call occurs when your account equity falls below the margin requirement. A stop-out happens when your broker automatically closes positions because your equity can no longer support your open trades. Higher leverage amplifies both profits and losses.
Complete Guide to Forex Margin and Leverage
Margin vs. Leverage: What's the Difference?
Margin and leverage are two sides of the same coin. Leverage is the ratio (e.g., 1:100), while margin is the actual dollar amount your broker requires as collateral. With 1:100 leverage, the margin requirement is 1% of the position's notional value. A $100,000 position requires $1,000 in margin. Understanding this relationship prevents accidentally overleveraging your account.
Free Margin and Margin Level Explained
Free margin is the amount available for opening new positions, calculated as: Equity - Used Margin. Margin Level is the ratio of Equity to Used Margin, expressed as a percentage. If your equity is $5,000 and used margin is $1,000, your margin level is 500%. Most brokers issue margin calls at 100% and stop-out at 20-50%. Monitoring your margin level is essential for avoiding forced liquidation.
How Different Leverage Levels Affect Required Margin
The same position requires dramatically different margin at different leverage levels. A 1 standard lot EUR/USD position ($108,500 notional) requires: $2,170 at 1:50, $1,085 at 1:100, $362 at 1:300, and $109 at 1:1000. While higher leverage means smaller margin requirements, it also means your account can withstand fewer adverse pips before a margin call.
Frequently Asked Questions
What happens if my margin level drops below 100%?
When margin level falls below 100%, most brokers issue a margin call notification. You'll need to either deposit more funds or close some positions. If margin level continues falling to the stop-out level (typically 20-50%), the broker automatically closes your losing positions starting with the largest loss.
Can I lose more money than I deposited?
With most regulated brokers (FCA, ASIC, CySEC), negative balance protection means you cannot lose more than your deposited capital. However, offshore brokers may not offer this protection. Always verify your broker's negative balance protection policy before trading with high leverage.
What is the best leverage for beginners?
Most educators recommend 1:10 to 1:30 leverage for beginners. EU regulation (ESMA) caps retail leverage at 1:30 for major pairs and 1:20 for minors. Higher leverage allows smaller margin requirements but amplifies losses. It's not about how much leverage is available — it's about how much you actually use.
Does margin earn interest?
No. Margin is not a fee — it's a collateral deposit. It remains in your account and is released when you close the position. Some brokers do charge swap/rollover fees on leveraged positions held overnight, but this is separate from the margin itself.