Free Trading Tool

Margin Calculator

See exactly how much margin a position ties up before you open it, so a single trade never swallows your whole account.

Enter your details and press calculate.

How to use the margin calculator

Enter your position size in lots, the lot type, the current price of the instrument, and your account leverage. The calculator returns the notional value of the trade and the margin your broker will lock up to hold it. The figure is shown in the base currency of the pair; if your account currency differs, multiply by the relevant exchange rate for an exact deposit figure.

The margin formula

Notional value = Lots × Contract size × Price
Required margin = Notional value ÷ Leverage

One standard lot at a price of 1.10 has a notional value of 1 × 100,000 × 1.10 = 110,000. At 1:30 leverage the margin required is 110,000 ÷ 30 = 3,667. The other 106,333 is supplied by leverage, which is exactly why a small adverse move can hurt if the position is too large.

Margin, leverage and survival

It is tempting to read low margin as a green light to trade bigger. It is the opposite. Leverage decides how much margin you tie up, but your real exposure is set by position size and stop distance. The discipline that keeps an account alive is sizing each trade to a fixed risk, then checking that the margin it needs leaves plenty of free equity as a buffer. Work out the right size first with the position size calculator, and learn how we apply 2 percent risk on the methodology page.

Frequently asked questions

What is margin in forex and CFD trading?

Margin is the deposit your broker sets aside to open a leveraged position. It is not a fee; it is collateral that is returned when you close the trade. Leverage of 1:30 means you only need to put up about 1/30th of the position’s full value as margin.

How is required margin calculated?

Required margin equals the full notional value of the position divided by your leverage. The notional value is the number of units multiplied by the current price. So a 100,000 unit position priced at 1.10 has a notional of 110,000, and at 1:30 leverage the margin needed is about 3,667.

What is the difference between margin and leverage?

Leverage is the ratio that lets you control a large position with a small deposit, written as 1:30 or 1:100. Margin is the actual money that deposit comes to. Higher leverage means lower required margin for the same position, but it does not change your risk if you size the trade properly.

What is a margin call?

A margin call happens when losing trades pull your account equity below the margin needed to keep positions open. The broker may close trades automatically to protect itself. The way to avoid it is conservative position sizing, not maximum leverage. Use the position size calculator to keep risk small.

Does more leverage mean more risk?

Leverage by itself sets how much margin you tie up, not how much you can lose. Your real risk is decided by position size and stop-loss distance. Two traders at different leverage but the same lot size and stop carry the same money risk. The danger of high leverage is that it tempts traders into oversized positions.

More trading tools

Position Size Calculator →Pip Calculator →Profit & Loss Calculator →

These calculators are provided for educational purposes only and assume standard contract sizes. Always confirm pip values, margin, and contract specifications with your broker before trading. Trading involves substantial risk. Read the full disclaimer.