Trading Tools
Margin Calculator
Calculate the margin required to open and hold a forex position. Understanding margin requirements helps you manage leverage effectively and avoid unexpected margin calls.
Understanding Margin
Margin is not a fee or a cost — it is a portion of your account equity set aside as a good-faith deposit to open and maintain a leveraged position. Think of it as collateral. When you close the trade, the margin is released back to your account (adjusted for any profit or loss). The higher your leverage, the less margin is required — but this also means each pip of movement has a larger impact relative to your deposit.
Parameters
Enter your trade details below
Margin calculated in US dollars
1 EUR = X USD
1 standard lot = 100,000 units
Higher leverage = lower margin required, but higher risk
Approximate current rate (editable)
Results
Your calculated margin requirement
Required Margin
$1,085.00
at 1:100 leverage
Notional Value
$108,500.00
Full position value
Margin %
1.00%
Margin / position value
Contract Size
100,000
Total units traded
Leverage
1:100
1.00% margin rate
Same Position at Different Leverage
Formula
How margin is calculated step by step
Calculate Notional Value
Notional Value = Lot Size x Contract Size (100,000)
1.0 lots x 100,000 = 100,000 units
Convert to Account Currency
Quote is USD: Value in USD = Notional Value x Exchange Rate
100,000 units x 1.0850 = $108,500.00
Apply Leverage
Required Margin = Value in USD / Leverage
$108,500.00 / 100 = $1,085.00
The Double Edge of Leverage
High leverage (e.g., 1:500) means you need very little margin to open large positions, but it also means small price movements can wipe out your deposit quickly. A 1% adverse move on a 1:100 leveraged position results in a 100% loss of your margin. Most regulated brokers in the EU and Australia cap retail leverage at 1:30 for major pairs. Always ensure you understand the risk before using high leverage.
Margin Requirements for EUR/USD
Required margin at different leverage levels for the selected pair (at rate 1.0850)
| Leverage | Margin Rate | 0.01 Lot | 0.1 Lot | 1.0 Lot |
|---|---|---|---|---|
| 1:10 | 10.00% | $108.50 | $1,085.00 | $10,850.00 |
| 1:30 | 3.33% | $36.17 | $361.67 | $3,616.67 |
| 1:50 | 2.00% | $21.70 | $217.00 | $2,170.00 |
| 1:100 | 1.00% | $10.85 | $108.50 | $1,085.00 |
| 1:200 | 0.50% | $5.43 | $54.25 | $542.50 |
| 1:500 | 0.20% | $2.17 | $21.70 | $217.00 |
Margin Call & Stop-Out Levels
What happens when your margin runs low
Margin Level
Margin Level (%) = (Equity / Used Margin) x 100
Your margin level indicates how much of your account equity is being used as margin. A healthy margin level is typically above 200%. Brokers monitor this continuously.
Margin Call
A margin call occurs when your margin level drops to a broker-defined threshold, commonly 100% (meaning your equity equals your used margin). At this point, you can no longer open new positions. Some brokers issue a warning at 120%. The margin call is a signal to either close positions or deposit additional funds.
Stop-Out Level
If your margin level continues to fall — typically to 50% or lower — the broker will automatically begin closing your positions, starting with the largest losing trade. This is the stop-out level. It exists to prevent your account from going into negative balance. Different brokers use different stop-out levels; always check your broker's terms.
For educational purposes only. Not financial advice. Exchange rates and margin calculations are approximate. Actual margin requirements vary by broker, account type, and regulatory jurisdiction. Always verify with your broker before placing trades. Trading forex on margin involves significant risk of loss.