Forex Margin Calculator
Calculate the margin required to open a forex position at a given leverage.
Please note: Forex trading carries a high risk of loss, amplified by leverage. Exchange rates must be entered manually — no live market data is used.
What the Forex Margin Calculator does
Margin is the deposit your broker requires to open a leveraged position. It is the notional value divided by the leverage ratio — the higher the leverage, the less capital is tied up, and the less room the position has before a margin call.
Formula
Notional value = Units × Price × Conversion rateRequired margin = Notional value ÷ LeverageMargin requirement % = 100 ÷ Leverage
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Trade size (lots) | number | Yes | Accepts more than 0. |
| Lot type | one of 4 options | Yes | — |
| Pair price | number | Yes | Price of the base currency in the quote currency. Accepts more than 0. |
| Leverage | one of 9 options | Yes | — |
| Quote → account currency rate | number | Yes | Accepts more than 0. |
| Account balance | selected currency | Optional | Optional — shows free margin. Accepts 0 or more. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Lot type and Leverage.
- Enter Trade size (lots), Pair price and Quote → account currency rate.
- Optionally add Account balance.
- Select Calculate.
Worked example
One standard lot of EUR/USD at 1.0850 with 1:30 leverage.
- Lots
- 1
- Price
- 1.0850
- Leverage
- 1:30
Notional $108,500 ÷ 30 = $3,616.67 of margin required.
Reading the result
- "Margin requirement %" is just leverage expressed the other way round — useful when a broker quotes margin requirement directly rather than a leverage ratio.
- "Effective account leverage" (shown once a balance is entered) reflects how leveraged the whole account is relative to this one position's notional, and can be much lower than the leverage ratio selected if the position is small relative to the balance.
Assumptions and limitations
- The margin-at-other-leverage table holds notional value fixed — it shows how margin changes with leverage alone, not what would happen if position size also changed.
- The conversion rate is a single static entered figure, so it stays accurate only as long as the real exchange rate does not move far from what was entered.
Common mistakes
- Assuming a lower margin requirement (higher leverage) makes a position safer because less capital is committed upfront — leverage does not change how much the position can lose in dollar terms, only how much of your own capital sits behind it before a margin call.
- Reading the margin-at-other-leverage table as a menu of equally sensible choices — a lower margin figure at higher leverage means less room before a margin call, not a better deal.
Frequently asked questions
Is margin a fee?
No. It is collateral held while the position is open and released when you close it. What you actually pay is the spread, commission and any swap.