Margin Calculator

Edited by

David Johnson

Fact checked by

Evelina Laurinaityte

Last updated

February 2026 Advertising disclosure →

Use this convenient forex and cryptocurrency margin calculator to accurately calculate the amount of funds required to open or add a trading position, based on your trade size and the available leverage provided by your broker.

What Are Leverage and Margin in Trading?

Leverage allows traders to control larger positions with a smaller amount of capital (margin), thereby significantly increasing both potential profits and losses. Leveraged trading is also known as margin trading.

Leverage amplifies potential gains and losses. For example, without leverage, if you buy EUR/USD at a price of 1.0000, the price would have to fall to zero for you to lose your entire investment, or rise to 2.0000 to double your investment. If you trade using 100:1 leverage, only 1/100 of the original price movement is required to generate the same profit or loss.

Margin is the amount of capital a trader must commit to open a new position. It is not a fee or a cost and is released once the position is closed. Its purpose is to protect the broker from losses. When losses cause a trader’s margin to fall below a predefined stop-out level, the broker will automatically close one or all open positions. Before liquidation, the broker may or may not issue a margin call warning.

How Leverage Works

With 100:1 leverage, a trader can open a position 100 times larger than without leverage. For example, if the cost of opening a 0.01-lot EUR/USD position is USD 1,000 (without leverage), and the broker offers 100:1 leverage, the trader only needs USD 10 as margin. Of course, traders can also use lower leverage ratios, such as 30:1 or 5:1, or choose not to use leverage at all.

Note: Higher leverage ratios imply higher risk. Most professional traders use lower leverage ratios, typically no more than 5:1, or avoid leverage altogether, while also keeping the risk per trade low (usually no more than 2% of account equity).

How to Use This Forex Margin Tool

Instrument: In this field, traders can choose from a wide range of forex currency pairs (including major and minor pairs), the most popular cryptocurrencies (ADA, BTC, DOGE, ETH, LTC, Stellar, Ripple, etc.), as well as popular currencies and commodities such as gold, silver, and oil. In this example, we will select EUR/USD.
Deposit Currency: The margin value of forex pairs and other financial instruments varies based on current market prices. By selecting the deposit currency, the tool accurately displays the margin required to open a position in the selected instrument using the chosen currency (ranging from AUD to ZAR). In this example, we will select GBP as the deposit currency.
Leverage: In this field, traders enter the leverage ratio. This can be the current leverage offered by the broker or any other ratio, ranging from as low as 1:1 to as high as 6000:1, to simulate the margin required to open a position. In this example, we will select 30:1 leverage.
Lot Size (Trade Size): Simply enter the number of lots. Remember that in forex trading, 1 lot equals 100,000 units of the base currency, while the lot size for non-forex instruments may differ. Therefore, this field also allows switching between “lots” and “units” for calculation purposes. In this example, we will use a trade size of 0.10.
Click the “Calculate” button: The tool will automatically calculate the margin required to open the position based on the parameters above.

Result Example: Using all the data above, the leverage and margin calculator shows that to open a 0.10-lot long or short EUR/USD position with 30:1 leverage and a current EUR/GBP exchange rate of 0.90367, we would need GBP 301.22 in margin.

The leverage and margin calculator can also be used to identify lower-cost trading pairs. Using the same calculation parameters (30:1 leverage and a 0.10-lot position), if we choose the AUD/USD currency pair, we can see that the required margin is significantly lower—only GBP 186.89.

FAQ

What Is Forex Margin?

Forex margin is the amount of funds that must be set aside with your broker to open a trading position. It is not an additional fee, but rather a form of collateral used to cover trading risk. Once the position is closed, this margin is released. The required margin depends on the instrument traded, the trade size (lots), and the leverage ratio used.

How Does Leverage Affect the Required Margin?

The higher the leverage, the less margin is required to open the same position size; the lower the leverage, the more margin is needed. For example, with 100:1 leverage, opening one standard lot of EUR/USD requires margin equal to about 1% of the notional contract value. With 30:1 leverage, the required margin is approximately 3.33%. Keep in mind that higher leverage also magnifies both potential profits and losses, increasing overall risk.

How Does This Leverage and Margin Calculator Work?

The calculator uses your selected instrument, account deposit currency, leverage ratio, and trade size, along with real-time or near real-time market prices. It first calculates the notional value of the position, then derives the required margin based on the selected leverage. Simply enter the parameters and click the “Calculate” button to see the margin required to open the trade.

Why Is the Result Slightly Different from What My Broker Shows?

Common reasons for discrepancies include:

Different contract specifications and minimum lot sizes across brokers;
Some brokers temporarily increase margin requirements during high volatility or before weekends;
Minor differences in price feeds, spreads, and currency conversion methods.

Therefore, the figures provided by this tool are estimates based on standard contract specifications and are for reference only. Please rely on your broker’s trading platform for the actual margin requirements.

Can I Use This Tool to Compare Margin Requirements Across Different Instruments?

Yes. You can select different forex pairs, indices, commodities, or cryptocurrencies in the “Instrument” field while keeping the same leverage and trade size. The calculator will display the required margin for each instrument, allowing you to easily compare which markets require less margin and may better suit your account size and risk preference.

What Leverage Level Is Considered Safer?

There is no single “best” leverage for everyone, but most professional traders prefer relatively conservative leverage and strict risk control:

Common approaches include using effective leverage of 5:1, 10:1, or lower;
Limiting the maximum loss per trade to 1%–2% of account equity;
Reducing position size and leverage during major news releases or high-volatility periods.

It is recommended to use this margin calculator to simulate different parameter combinations and find a leverage level that meets your trading needs while staying within your risk tolerance.

Can Margin Trading Result in a Negative Account Balance?

In extreme market conditions, such as sudden price gaps or unusually high volatility, it is theoretically possible for losses to exceed your account balance, resulting in a negative balance. However, many regulated brokers offer negative balance protection, which limits losses to the funds in your account.
By using this tool to understand margin requirements in advance and combining it with proper position sizing and stop-loss strategies, you can reduce the likelihood of extreme risk events. Please refer to your broker’s terms and conditions for specific protection policies.