Margin Calculator
Calculate required margin, free margin and margin level for an open position.
Please note: Trading carries substantial risk of loss. These calculators are planning tools, not trading advice, and no position sizing method prevents losses.
What the Margin Calculator does
Margin is the collateral your broker holds against an open position. Used margin is locked away, free margin is what remains available, and margin level — equity divided by used margin — is the number that determines whether you get a margin call.
Formula
Used margin = Position value × Margin requirement %Equity = Balance + Unrealised P&LFree margin = Equity − Used marginMargin level = Equity ÷ Used margin × 100
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Account equity | selected currency | Yes | Accepts more than 0. |
| Position value (notional) | selected currency | Yes | Accepts more than 0. |
| Margin requirement | % | Yes | Or use leverage: 10% equals 10× leverage. |
| Unrealised P&L | selected currency | Optional | Negative for an open loss. Accepts 0 or more. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Account equity, Position value (notional) and Margin requirement.
- Optionally add Unrealised P&L.
- Select Calculate.
Worked example
A $10,000 account holding a $60,000 position at a 10% requirement, currently down $1,500.
- Equity
- 10000
- Position
- 60000
- Requirement
- 10
- Unrealised
- -1500
Used margin $6,000, equity $8,500, free margin $2,500, margin level 141.7% — getting tight.
Frequently asked questions
What is a margin call?
A demand to add funds or close positions when your margin level falls below the broker threshold. Ignoring it usually means the broker closes positions for you at whatever price is available.
How do I avoid one?
Keep free margin well above zero, use stop-losses so losses cannot run, and size positions so that normal volatility does not consume your buffer.
Method and sources
Method. Required margin as position value times the margin requirement, with the free margin and the resulting effective leverage.
Assumptions
- The margin requirement entered is the broker's current one for this instrument and size.
Limitations
- Requirements are not fixed. They are commonly raised around events, over weekends and for larger positions, and a position sized against today's requirement can breach tomorrow's.
- Free margin is not spare money — it is the buffer absorbing adverse movement before a margin call.