Calculate required margin instantly based on leverage and position size. Essential tool for forex risk management. No registration needed.
Risk Warning: Trading on margin involves significant risk. Losses can exceed deposits. Ensure you understand margin requirements before trading.
Higher leverage = lower margin requirement but higher risk
Margin trading allows you to control larger positions with less capital through leverage. Understanding margin is crucial for managing risk and avoiding unexpected position closures.
Beginner Recommendation: Start with 1:50 leverage and never risk more than 2% of your account per trade. As you gain experience, you can gradually increase leverage if appropriate for your strategy.
We calculate required margin using this formula: Required Margin = (Position Size × Current Price) ÷ Leverage. For cross-currency pairs, we automatically convert to your account currency using real-time exchange rates.
Trading 1.0 lot of EUR/USD at 1.0900 with 1:100 leverage:
Position Value = 100,000 × 1.0900 = $109,000
Required Margin = $109,000 ÷ 100 = $1,090
Comfortable trading with room for drawdown
Monitor closely, consider reducing exposure
Cannot open new trades, stop-out risk
| Currency Pair | Position Size | Leverage | Required Margin | Position Value |
|---|---|---|---|---|
| EUR/USD @ 1.0900 | 1.00 lot | 1:50 | $2,180 | $109,000 |
| EUR/USD @ 1.0900 | 1.00 lot | 1:100 | $1,090 | $109,000 |
| EUR/USD @ 1.0900 | 1.00 lot | 1:200 | $545 | $109,000 |
| EUR/USD @ 1.0900 | 1.00 lot | 1:500 | $218 | $109,000 |
| USD/JPY @ 150.00 | 0.50 lots | 1:100 | $500 | $50,000 |
| GBP/USD @ 1.2700 | 0.10 lots | 1:200 | $63.50 | $12,700 |
*Examples use standard lot size of 100,000 units. Actual rates may vary.
Keep at least 50-100% free margin as buffer. This prevents margin calls during normal market volatility and allows for new opportunities.
Calculate position size based on acceptable risk, then verify margin requirements. Never max out available margin.
Multiple positions in correlated pairs increase overall margin usage and risk. Diversify to manage margin efficiently.
Higher leverage means lower margin but higher risk. Use leverage appropriate to your experience and risk tolerance.
Market volatility can quickly change margin levels. Monitor more frequently during news events and volatile sessions.
Positions held overnight may face gap risk. Ensure adequate margin to handle potential adverse gaps at market open.
Required margin is the collateral locked for open positions. Free margin is what remains available for new trades after subtracting required margin from equity.
Higher leverage reduces required margin per trade. For example, 1:100 leverage needs 1% of position value as margin, while 1:500 needs only 0.2%.
Margin level = (Equity / Required Margin) × 100. Below 100% means you cannot open new trades. Below 50% typically triggers stop-out (forced position closure).
Margin requirements can change due to floating P&L affecting equity, currency conversion rate changes, or broker adjusting leverage during volatile periods.
For cross pairs, convert the base currency to your account currency using current exchange rates. Our calculator handles this conversion automatically.
A margin call warns you when margin level drops below a threshold (usually 100%). You must add funds or close positions to avoid stop-out.
No, forex trading requires margin as collateral. The amount depends on leverage and position size. Even with high leverage, some margin is always required.
Keep at least 50-100% free margin as a buffer. This prevents margin calls during normal market fluctuations and allows for new opportunities.
Explore our other trading calculators
Calculate optimal lot size based on risk
Instantly calculate pip value
Analyze ratio and breakeven rate
Understand how leverage works and the fundamentals of margin management.
Read the Complete GuideOpen a Milton Markets account and trade with competitive leverage and tight spreads.