Free calculator
Margin calculator: what a position ties up.
Enter a pair, lot size, price and your leverage to see the margin your broker holds while the trade is open. Free and instant.
By the verify.trading team · Last reviewed · How we write
3,616.67 USD
margin required
Leverage
30:1
Margin rate
3.33%
Units
100,000
Brokers use different margin rates by instrument and entity.
The maths
Margin = position value in account currency / leverage
Formula
Margin = (Lots x 100,000 x Base-to-account rate) / Leverage
Worked example
- Buy 1 standard lot EUR/USD at 1.0850, USD account, 30:1 leverage.
- Position value = 100,000 EUR x 1.0850 = 108,500 USD.
- Margin = 108,500 / 30 = 3,616.67 USD held while the trade is open.
- At 10:1 the same trade needs 10,850 USD, which is why lower leverage limits how big a position you can open.
What is margin in trading?
The amount your broker sets aside from your account to hold a leveraged position open. It is not a fee, and it is returned when the position closes.
How is required margin calculated?
Position size in units times the price converted to your account currency, divided by your leverage. One standard lot of EUR/USD at 1.0850 with 30:1 leverage needs about 100,000 x 1.0850 / 30 = 3,616.67 USD.
What leverage limits apply to retail traders?
They depend on your regulator and the instrument. UK and EU retail rules cap leverage on major forex pairs at 30:1, but check your own broker's terms, since limits vary by entity.
What is a margin call?
A broker warning, or automatic closure, when your account equity falls too far below the margin needed to keep positions open. Keeping position sizes small is the way to stay clear of it.
Size it, then check who you are trading with
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