Forex Margin Calculator
Determine the exact margin required for your trades based on position size, currency pair, and leverage ratio.
USD value of 1 EUR — margin is based on the position's base currency
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Quick answer
Required margin = position notional value ÷ leverage. One standard lot of EUR/USD is about $108,000 of notional, so at 1:100 leverage it requires roughly $1,085 in margin. Formula: Margin = (lots × contract size × base/USD rate) ÷ leverage.
What is the Forex Margin Calculator?
How to Use This Calculator
- Enter your position size — How many lots are you trading? Standard lot is 100,000 units.
- Select the currency pair — Different pairs have different margin requirements. Exotics need more margin than majors.
- Input your leverage — What leverage does your broker offer? US brokers max out at 50:1, offshore can go 500:1 or higher.
- Check your account currency — Margin is calculated in the base currency, then converted to your account currency.
- Review required margin — This is the amount your broker will hold. Make sure you have way more than this in your account.
Real-World Example
Example 1: Trading EUR/USD with 100:1 leverage
You want to buy 1 standard lot (100,000 EUR). At 100:1 leverage, your margin requirement is 1%.
Required Margin = 100,000 × 1% = 1,000 EUR
If your account is in USD and EUR/USD is 1.0850, you need $1,085 locked up as margin.
Example 2: Lower leverage, higher margin
Same trade but with 50:1 leverage (2% margin).
Required Margin = 100,000 × 2% = 2,000 EUR = $2,170
Twice the margin for the same position. Lower leverage means more capital tied up but also more room to breathe.
Example 3: Multiple positions
You have 3 open trades: 1 lot EUR/USD, 0.5 lots GBP/USD, 2 lots USD/JPY. Each requires its own margin. If your account equity drops below total margin, you get a margin call. Go lower, and positions start closing automatically. Not fun.
When to Use
- Before every trade — Know exactly how much capital gets locked up.
- When scaling positions — Adding to winners? Calculate if you have enough free margin.
- Planning multiple trades — Three setups lined up? Make sure you can hold all of them simultaneously.
- Comparing brokers — Different leverage means different margin requirements for the same trade.
- During high volatility — Some brokers increase margin requirements before major news. Check ahead of time.
Common Mistakes
- Confusing margin with cost — Margin isn't spent, it's held. You get it back when you close the trade.
- Using all available margin — Having $1,000 and using $950 as margin leaves zero room for drawdown. One bad candle and you're liquidated.
- Ignoring margin calls — A margin call is a warning. Either add funds or close positions. Don't just hope the market reverses.
- Not accounting for spread — You enter a trade already in the negative by the spread amount. That comes out of your free margin instantly.
- Forgetting about swap — Hold positions overnight and swap fees eat into equity. Less equity means closer to margin call territory.
Use Together With
Position Size Calculator
Calculate the perfect position size for your trades based on your account size, risk tolerance, and stop loss distance.
Position Value Calculator
Calculate the total value of your forex position in your account currency.
Risk of Ruin Calculator
Assess the probability of losing your entire account based on your trading statistics.
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