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Margin Calculator

What this tool does

Margin is the deposit your broker locks up as collateral when you open a leveraged position. The Margin Calculator takes your currency pair, trade size, leverage ratio, and account currency, then shows how much of your balance will be tied up as margin. It also shows your free margin — what remains available for other trades or to absorb losses.

This is essential for avoiding margin calls. If your floating losses eat through your free margin, your broker can close your positions automatically, often at the worst moment. Knowing your margin requirement before you trade helps you keep leverage at a level your account can actually survive. Remember that higher leverage magnifies both gains and losses equally.

How to use it

  1. Select the currency pair for your planned trade.
  2. Enter the position size in lots or units.
  3. Set the leverage your account uses (for example 1:50 or 1:100).
  4. Choose your account currency.
  5. The calculator shows the required margin and your remaining free margin.
  6. Compare the free margin against your stop-loss risk — leave a comfortable buffer for normal market swings.

Frequently asked questions

What is the difference between margin and leverage?

Leverage is the ratio (like 1:100) that lets you control a large position with a small deposit. Margin is the actual cash amount locked as collateral for that position. Higher leverage means lower margin per trade — and higher risk.

What happens if my margin level gets too low?

Your broker issues a margin call, warning you to add funds or reduce positions. If losses continue, the broker will start closing your trades automatically (a stop-out), usually beginning with the most losing position.

Does unused margin earn anything?

No. Margin sitting as collateral does not generate returns — it is simply locked. Only your free margin is available to open new positions or cushion against losses.

Risk disclaimer: This calculator is for education only. Trading forex and CFDs carries substantial risk. Not financial advice.

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