What is a Margin Calculator?
A margin calculator is used to determine how much capital is required to open and hold a trade. It ensures you understand how leverage and position size affect your margin requirement, allowing you to manage risk more effectively.

How you can use this Margin Calculator (Step by Step)

Choose Your Account Currency
Select the base currency of your trading account so results are displayed in the correct value.
Select the Trading Instrument
Pick the currency pair or asset you want to trade (e.g., EUR/USD, GBP/JPY).
Enter the Trade Size
Input the number of lots or units you plan to trade.
- Standard Lot = 100,000 units
- Mini Lot = 10,000 units
- Micro Lot = 1,000 units
Set Your Leverage
Enter leverage you used to open your trading account (e.g., 1:50, 1:100, 1:500). Higher leverage reduces the margin requirement but increases risk.
Input the Current Price (or Entry Price)
Add the current or expected market price of the instrument.
Click Calculate
The calculator instantly shows the required margin for your trade. This is the minimum capital you need in your account to open that position.

Example Calculation

If you trade 1 standard lot of EUR/USD at 1.1200 with 1:100 leverage in a USD account:

Required Margin = (100,000 × 1.1200) ÷ 100 = $1,120

So, you would need $1,120 of free margin in your account to place this trade.

Pro Tips for Traders

Always compare your margin requirement with your account balance to avoid margin calls.
Use smaller lot sizes if you’re trading with a limited account balance.
Don’t confuse low margin requirement with low risk—leverage amplifies both profits and losses.
Combine margin calculation with proper stop-loss and risk management for safe trading.

Margin Calculator FAQ

1. What is margin in trading?

Margin is the minimum amount of money required in your account to open and maintain a trading position. It acts as a security deposit that allows you to use leverage.

2. Why is margin important?

Margin ensures you have enough funds to support your trades. Without proper margin, your broker may issue a margin call or close positions to protect against losses.

3. How does leverage affect margin?

Leverage directly reduces the margin needed. For example, with 1:100 leverage, you only need 1% of the total trade value as margin. Higher leverage = lower margin requirement, but also higher risk.

4. What is free margin?

Free margin is the unused balance in your account available to open new trades. It equals your account equity minus the margin currently tied up in active positions.

5. What happens if margin is too low?

If your equity falls below the required margin, you risk a margin call. This means your broker may ask you to add more funds or automatically close trades to prevent negative balance.

6. Can margin guarantee profits?

No. Margin and leverage only control the size of your position. Profits (or losses) depend on market movement. Higher leverage can amplify both gains and losses.

7. How can the margin calculator help me?

The calculator instantly shows the exact margin needed for any trade size, instrument, and leverage. This helps you plan trades, avoid margin calls, and use leverage responsibly.

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