Margin Calculator
Calculate the required margin for any leveraged trade. Know your free margin and margin level before entering a position.
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Inputs
Results
Required Margin
$1,100.00
Notional Value
$110,000.00
Free Margin
$8,900.00
Margin Level
909.1%
Max Trade Size
909,091
Who Is This For?
Forex and crypto traders who need to know how much margin is required to open a leveraged position and how much free margin remains in their account.
Understanding Margin in Trading
Margin is the collateral your broker requires to open a leveraged position. With 100:1 leverage, a $100,000 position only requires $1,000 in margin.
Margin level (equity / used margin) tells you how close you are to a margin call. Most brokers trigger a margin call below 100% and start liquidating positions below 50%.
Always calculate your margin requirements before trading. Use our liquidation price calculator to find your exact liquidation level, and the lot size calculator to properly size your positions.
Margin Formulas
Required Margin: Required Margin = Position Size / Leverage
Free Margin: Free Margin = Account Equity - Used Margin
Margin Level: Margin Level = (Equity / Used Margin) × 100%
Example: Trading 1 standard lot EUR/USD (100,000 units at $1.10 = $110,000 position). With 100:1 leverage, required margin = $110,000 / 100 = $1,100
Margin call typically occurs when margin level drops below 100%. Forced liquidation at 50% on most brokers.
Leverage and Margin Requirements
1:1 leverage = 100% margin (no leverage, full cash).
10:1 = 10% margin required.
50:1 = 2% margin.
100:1 = 1% margin.
500:1 = 0.2% margin (very high risk).
Higher leverage means less margin required but liquidation is closer to your entry price.
Worked Example
Position: 1 standard lot EUR/USD at $1.0850
Leverage: 100:1
Position value: 100,000 × $1.0850 = $108,500
Required margin: $108,500 / 100 = $1,085
Free margin (with $10,000 account): $10,000 - $1,085 = $8,915
Assumptions & Edge Cases
- Assumes fixed leverage (no dynamic margin requirements).
- Does not account for hedging margin reductions.
- Margin requirements vary by broker and may change during high volatility.
Frequently Asked Questions
Margin is the collateral (cash deposit) required to open and maintain a leveraged position. It is not a fee or cost — it is your own capital held by the broker as security. If you open a $100,000 position with 100:1 leverage, your required margin is $1,000. The remaining $99,000 is effectively borrowed from the broker.
A margin call occurs when your account equity drops below the required margin level (typically 100%). The broker notifies you to deposit more funds or close positions. If you don’t act and equity falls further (usually to 50% margin level), the broker will forcibly close your positions to prevent further losses — this is called a stop-out or forced liquidation.
It depends on your leverage and position size. With 100:1 leverage (common for forex), you need 1% of the position value as margin. For 1 standard lot of EUR/USD at 1.10, that’s $1,100. Most brokers recommend maintaining free margin well above the minimum — a good rule is never using more than 10-20% of your account as margin to avoid margin calls during normal market volatility.