Margin Calculator

The margin calculator shows how much of your account balance is required as collateral to open and hold a leveraged forex position. Understanding your margin requirement prevents margin calls and helps you manage how many positions you can hold simultaneously. Always ensure you have sufficient free margin to absorb drawdowns.

1.0 = standard lot (100k units)

e.g. 100 for 1:100 leverage

e.g. 1.10 for EUR/USD

Required Margin (USD)

$1100.00

Notional Value

$110,000

Margin Percentage

1.00%

Units Traded

100,000

How to use this calculator

  1. 1

    Enter your lot size

    The number of standard lots you plan to trade (1 lot = 100,000 units).

  2. 2

    Enter your leverage

    Your broker's leverage setting, e.g. 100 for 1:100 leverage.

  3. 3

    Enter the current price

    The current market price of the currency pair (specifically the base-to-USD rate).

  4. 4

    Read required margin

    The amount locked as margin for this position. Your free margin = account equity − used margin.

Formula

Required Margin = (Lot Size × 100,000 × Price) ÷ Leverage

Notional Value = Lot Size × 100,000 × Price
Margin %       = 1 ÷ Leverage × 100

The notional value is the full size of the position in dollars. Divide by leverage to get the margin required. At 1:100 leverage, a $110,000 notional position requires $1,100 in margin. The remaining equity is your free margin, which acts as a buffer against losses.

Worked Example

Lot size: 1 standard lot Leverage: 1:100 EUR/USD price: 1.1000 Notional = 100,000 × 1.1000 = $110,000 Required Margin = $110,000 ÷ 100 = $1,100 To open one standard lot of EUR/USD at 1.1000 with 1:100 leverage, you need $1,100 in your account as margin. Your $10,000 account still has $8,900 in free margin.

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