How it works
When you trade with leverage, you control a position worth far more than the money you put up. The broker requires a deposit, called margin, equal to a fraction of the position's full value (its notional value).
The calculator finds the notional value of your trade, converts it into your account currency and divides it by the leverage ratio.
Formula
Notional value (quote currency) = units × price
Convert notional to your account currency:
- Account currency = quote currency: no change
- Account currency = base currency: notional = units (no price needed)
- Otherwise: multiply by the quote → account rate
Required margin = notional (account currency) ÷ leverage
Margin % = 100 ÷ leverage
Worked examples
All prices are illustrative.
Example 1: EUR/USD, USD account, 30:1
- Size: 100,000 units (1 standard lot)
- Price: 1.0850
Notional = 100,000 × 1.0850 = $108,500
Margin = 108,500 ÷ 30 = $3,616.67
Margin % = 100 ÷ 30 = 3.33%
Example 2: USD/JPY, USD account, 50:1
- Size: 100,000 units
Your account currency is the base currency, so the notional value is simply $100,000.
Margin = 100,000 ÷ 50 = $2,000 (2%)
Example 3: EUR/GBP, USD account, 20:1
- Size: 100,000 units
- EUR/GBP price: 0.8600
- GBP → USD rate: 1.2700
Notional in GBP = 100,000 × 0.8600 = £86,000
Notional in USD = 86,000 × 1.2700 = $109,220
Margin = 109,220 ÷ 20 = $5,461 (5%)
Free margin and margin level
Brokers usually show a few related numbers:
- Used margin: the total margin held for open positions.
- Free margin: equity minus used margin; the amount available for new trades or to absorb losses.
- Margin level: equity ÷ used margin × 100%. If this falls to your broker's threshold, you may face a margin call or automatic close-out.
For example, with equity of $10,000 and used margin of $3,616.67 (Example 1), free margin is $6,383.33 and the margin level is about 276%.
Tips
- Don't size trades by margin. Being able to open a position doesn't mean you should. Use the Lot Size Calculator to size by risk, then check margin here.
- Know your broker's limits. Maximum leverage depends on your regulator, account type and instrument.
- Keep a buffer. Using most of your available margin leaves little room for normal price swings.
- See the overall picture with the Leverage Calculator, which shows effective leverage across all open trades.
- Background reading: What is margin? and What is leverage?.
Risk note
Leverage magnifies both profits and losses. A small move against a heavily leveraged position can wipe out a large part of your account. Margin figures here are estimates; your broker's live calculation is the one that applies. This tool is educational and not investment advice.
Frequently asked questions
What is margin in forex?
Margin is the deposit your broker holds while a leveraged position is open. It is not a fee; it is returned when you close the trade, adjusted for any profit or loss.
How does leverage relate to margin?
They are two views of the same thing. Margin % = 100 ÷ leverage, so 30:1 leverage means a 3.33% margin requirement and 50:1 means 2%.
What is a margin call?
A margin call happens when your equity falls below the level your broker requires to keep positions open. The broker may ask for more funds or close positions automatically.
Why does the required margin change over time?
Margin is based on the position's notional value, which moves with the exchange rate. Brokers may also change leverage limits around news events or for certain pairs.
Does low margin mean low risk?
No. Margin only reflects the deposit needed to open a trade. Your risk depends on position size and how far the price moves against you.
Guide last reviewed .