Forex Margin Calculator

Choose a pair, a position size and your leverage to see how much margin the trade ties up.

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What margin is

Margin is the amount of your own money that your broker holds while a leveraged position is open. It is not a fee. You get it back when the position is closed, adjusted for profit or loss. The margin needed equals the value of the position divided by your leverage, so at 1:100 leverage, a 100,000 USD position needs 1,000 USD of margin.

How the calculator works

The position value is the number of units of the base currency, converted to your account currency at the current price. The calculator divides this by the leverage to get the margin, and also shows the margin in the base currency. For a EUR/USD standard lot at 1.0800 and 1:100 leverage, the position is worth 108,000 USD and needs 1,080 USD of margin.

Margin and risk

Higher leverage lowers the margin you need, but it does not lower the risk. A small move against you costs the same dollars in either case, and a position that uses most of your account can be closed by a margin call. Keep plenty of free margin, and check your effective leverage with the leverage calculator.

Forex trading with leverage carries a high risk of loss. This calculator does simple arithmetic and is not financial advice. Exchange rates are loaded from a public service and are mid-market rates, so the price your broker shows will differ slightly.

Common questions

How is forex margin calculated?

Margin equals the position value in your account currency divided by the leverage.

What does 1:100 leverage mean?

It means you control a position worth 100 times your margin. A 1,000 USD margin controls 100,000 USD.

Is margin a cost?

No. It is a deposit held while the trade is open and released when you close it.

What is a margin call?

It is a warning, or an automatic closing of positions, when your losses use up too much of your margin.

Does the pair change the margin?

Yes. The margin depends on the value of the base currency in your account currency, so the same lot of different pairs needs different margin.

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