Margin Calculator
Calculate the margin required to open a forex position at any leverage level. See how much collateral your broker locks and how much free margin remains in your account.
Margin at Different Leverage Levels
| 1:30 (EU) | — |
| 1:50 (US) | — |
| 1:100 | — |
| 1:200 | — |
| 1:500 | — |
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How the Margin Calculator Works
Our free margin calculator determines the required margin to open a forex position at a specific leverage level. Select your currency pair, enter your trade size and leverage, and the calculator instantly shows how much collateral your broker will lock, the full notional exposure of your position, and how much free margin remains in your account. This is essential for planning trades and avoiding margin calls.
What is Margin in Forex?
Margin is the collateral your broker requires to open and maintain a leveraged position. It is not a fee and it is not a cost of trading. Margin is simply a security deposit — a portion of your account equity that the broker locks while your trade is open. Once the position is closed, the margin is released back to your available balance. The amount of margin required depends on the position size and the leverage ratio.
Margin Formula
Example: 1 lot EUR/USD at 1.0850 with 1:500 leverage
Margin = (1 × 100,000 × 1.0850) ÷ 500 = $217.00
Example — Same Trade, Different Leverage
Trading 1 standard lot of EUR/USD at 1.0850:
1:30 leverage (EU): Margin = $108,500 ÷ 30 = $3,617
1:100 leverage: Margin = $108,500 ÷ 100 = $1,085
1:500 leverage: Margin = $108,500 ÷ 500 = $217
The position is identical in all three cases — the same profit/loss per pip. Only the amount locked as collateral differs.
Understanding Leverage Limits by Region
Different financial regulators impose maximum leverage caps to protect retail traders. The leverage available to you depends on your broker's jurisdiction and the asset class you are trading.
United States (CFTC/NFA): 1:50 major pairs, 1:20 minor pairs
Australia (ASIC): 1:30 major pairs (since 2021)
Japan (JFSA): 1:25 all pairs
Offshore (FSA, VFSC, etc.): Up to 1:500, 1:1000, or even 1:2000
WARNING
With 1:500 leverage, you can open a $100,000 position with just $200 margin. But if the trade moves 20 pips against you (just $200 on a standard lot), your entire margin is wiped out. Never use maximum leverage on your full account.
Margin Call and Stop-Out Levels
A margin call occurs when your account equity falls to or below the margin call level, typically set at 100% margin level (equity equals used margin). At this point, your broker warns you to either deposit additional funds or close some positions to free up margin. You can still manage your trades, but you cannot open new positions.
If the market continues to move against you and your equity drops further to the stop-out level (usually between 20% and 50% margin level, depending on the broker), the broker will automatically begin closing your most unprofitable positions. This is a protective mechanism to prevent your account balance from going negative. Different brokers set different stop-out levels, so always check this in your account terms before trading.
Free Margin vs. Used Margin
Used margin (also called required margin) is the total amount of collateral currently locked by all your open positions. Free margin is the portion of your account equity that is not locked — it is available to open new trades or absorb floating losses on existing positions. Free margin is calculated as: Free Margin = Equity − Used Margin.
If your free margin reaches zero, you cannot open any new positions, and you are at immediate risk of a margin call. Monitoring your free margin is critical to avoid forced liquidation, especially when holding multiple open positions or trading with high leverage.