Margin Calculator
Calculate the margin required to open a leveraged position.
Required Margin
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USD
Formula
Margin = (Lots × Contract Size × Exchange Rate) ÷ Leverage
Higher leverage = lower margin required, but higher risk per pip.
What Is Forex Margin?
Margin is the amount of money your broker holds as collateral to keep a leveraged position open. It is not a fee - it is a deposit that is returned when you close the trade. The higher your leverage, the less margin you need to control a large position.
For example, trading 1 standard lot of EUR/USD (100,000 units) at 1:100 leverage requires just $1,090 in margin (at a rate of 1.09), instead of the full $109,000 notional value. Leverage amplifies both profits and losses equally.
Margin Formula Explained
Formula:
Example:
1 lot EUR/USD · Rate: 1.0900 · Leverage: 1:100 · Contract: 100,000
Margin = (1 × 100,000 × 1.09) ÷ 100 = $1,090.00
Required Margin = (Lots × Contract Size × Exchange Rate) ÷ LeverageExample:
1 lot EUR/USD · Rate: 1.0900 · Leverage: 1:100 · Contract: 100,000
Margin = (1 × 100,000 × 1.09) ÷ 100 = $1,090.00
Required Margin by Leverage Level (1 lot EUR/USD at 1.09)
| Leverage | Margin Required | Margin % | Typical Broker |
|---|---|---|---|
| 1:30 | $3,633 | 3.33% | FCA / CySEC retail |
| 1:100 | $1,090 | 1.00% | Most offshore brokers |
| 1:200 | $545 | 0.50% | Exness, XM offshore |
| 1:500 | $218 | 0.20% | IC Markets, Pepperstone |
Frequently Asked Questions
What happens if my margin runs out?
When your account equity falls below the broker's margin call level (typically 50–100% of required margin), your broker issues a margin call warning. If equity falls below the stop-out level (usually 20–50%), the broker automatically closes your positions starting with the largest losing trade. To avoid margin calls, never use more than 20–30% of your available margin at one time.
What is the difference between margin and leverage?
Leverage is the ratio between your deposit and the position size you can control (e.g. 1:100 means $1 controls $100). Margin is the actual dollar amount your broker requires as collateral to open that position. Higher leverage means lower margin requirement - they are two sides of the same relationship.
How much margin do I need to trade 0.1 lots EUR/USD at 1:100?
At 1:100 leverage and an exchange rate of 1.09, trading 0.1 lots (10,000 units) of EUR/USD requires $109 in margin. The formula is: (0.1 × 100,000 × 1.09) ÷ 100 = $109. Always check your broker's specific margin requirements, as they may differ for exotic pairs or during volatile market conditions.