Margin for this position at other leverage levels
| Leverage | Margin required | Share of balance |
|---|
Loading the latest reference rates…
What this margin calculator does
This margin calculator shows how much margin a forex or gold trade needs before you open it. Enter your account balance, instrument, position size and leverage, and it shows:
- the margin required to open the position
- the position value in your account currency
- margin used, free margin and margin level
- your real leverage: how much each 1% price move changes your account
- the largest position your balance allows at that leverage
- the margin for the same trade at other leverage levels
It works with major and cross currency pairs, gold and silver, and accounts in USD, EUR, GBP, CAD, AUD, NZD, CHF and JPY.
How to use it
- Account currency and balance: your account currency and current equity.
- Instrument: the pair or metal you plan to trade.
- Position size: in lots, for example 0.5.
- Leverage: the leverage your broker offers for that instrument.
- Current price: filled in from daily reference rates for currency pairs. For metals, enter the price from your platform.
- Units per lot: 100,000 for currencies. Gold is usually 100 ounces, but check your broker.
The forex margin formula
Margin required = position value ÷ leverage
Position value = lots × units per lot × price, converted to your account currency.
Example: 0.5 lots of EUR/USD at 1.0870 is 50,000 euros, worth about $54,348. At 1:30 leverage, the margin required is $54,348 ÷ 30 ≈ $1,812.
Margin level and free margin
- Free margin = equity − margin used. It's the money available to absorb losses or open new trades.
- Margin level = equity ÷ margin used × 100. Brokers usually issue a margin call when it falls to around 100%, and close positions at a lower stop-out level.
For a step-by-step example of how a margin call happens, read our forex margin call example.
Leverage vs real leverage
Your broker's leverage, such as 1:30, sets the maximum position you can open. Your real leverage is the position value divided by your account balance. A $54,348 position on a $5,000 account is about 10.9:1, so a 1% price move changes your account by about 10.9%.
Many experienced traders keep real leverage much lower than the maximum allowed. Size positions from your risk with our position size calculator, and see the 2% rule in forex.
Frequently asked questions
How is forex margin calculated?
Divide the position value by your leverage. 1 lot of USD/JPY on a USD account is $100,000, so at 1:100 leverage the margin is $1,000.
Does higher leverage mean more risk?
Higher leverage lowers the margin needed, which lets you open bigger positions. The risk comes from position size: bigger positions mean bigger gains and losses for each pip.
How much margin do I need for gold?
Multiply the gold price by the ounces and divide by your leverage. 0.1 lots (10 ounces) at $4,000 with 1:20 leverage needs $2,000. See how much 1 pip in gold is worth.
Is my data saved?
No. The calculator runs in your browser, and nothing you enter is stored.
Related tools
This calculator is for education only and is not trading advice. Brokers' margin rules, contract sizes and leverage limits vary. Leveraged trading is high risk, and you can lose more than your deposit.