What is the Margin Calculator?
A margin calculator shows how much of your own capital you must put up to open a leveraged position. With leverage, you control a large notional value with a small deposit — the required margin — so knowing that number before you trade is essential to avoid over-leveraging and margin calls.
By comparing the required margin to your account balance, you can see how much buying power a trade consumes and whether you have enough cushion to survive normal price swings.
How to use it
- 01Enter your position size in units, shares, or contracts, and the entry price.
- 02Choose your leverage (for example 30:1) using the presets, or enter your own.
- 03Optionally enter your account balance to see how much of it the trade uses.
- 04If the instrument is priced in another currency, add the conversion rate to your account currency.
The formula
Margin requirement as a percentage equals 100 ÷ Leverage — 30:1 leverage requires about 3.33% margin.
Worked example
You open 100,000 units of a pair at 1.1000 with 30:1 leverage and a USD account (rate 1).
Notional Value = 100,000 × 1.1000 = $110,000. Required Margin = $110,000 ÷ 30 ≈ $3,667.
On a $10,000 account that single position ties up roughly 37% of your capital as margin.
Frequently asked questions
What is margin in trading?+
Margin is the amount of your own capital a broker requires you to deposit to open and maintain a leveraged position. It is not a fee — it's collateral set aside while the trade is open and returned when you close it.
How is required margin calculated?+
Required Margin = Notional Value ÷ Leverage. The notional value is your position size multiplied by the price (converted to your account currency). Higher leverage means a smaller margin requirement for the same position.
What leverage should I use?+
Lower leverage is safer because it leaves more free margin to absorb adverse moves. Many cautious traders keep effective leverage low even when the broker offers far more — high leverage magnifies losses just as much as gains.
What is a margin call?+
A margin call happens when losses erode your equity below the broker's maintenance requirement. The broker may ask you to add funds or automatically close positions. Keeping required margin well below your balance reduces this risk.
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For educational purposes only. Not financial advice.