Margin Calculator
The deposit a position ties up at a given leverage, and the notional value it controls.
- Required margin
- 3,633.33 USD
- Notional value
- 109,000.00 USD
- Margin requirement
- 3.33%
- Share of account
- 72.7%
How it works
Required margin is the notional value of the position divided by the leverage. At 1:30 a position of 100,000 euros at 1.10 to the dollar, worth 110,000 dollars, needs 3,667 dollars of margin in a dollar account. At 1:500 it needs 220 dollars. The notional value is the same in both cases, and so is the money at risk per pip; only the deposit differs.
The calculator also shows the margin as a share of the account, which is the figure to watch: a position using more than a fifth of the account in margin leaves little room for an ordinary adverse move before margin level falls towards the broker's thresholds.
The formula
Margin = (Lots x 100,000 x Price in account currency) / Leverage
Worked example
Half a lot of GBP/USD at 1.27 in a dollar account at 1:30: notional 63,500 dollars, margin 2,117 dollars, or 3.33 percent of the position. On a 5,000-dollar account that is 42 percent of equity tied up on one trade.
The same trade at 1:100 needs 635 dollars, 12.7 percent of the account. The risk per pip, 5 dollars, is identical.
Frequently asked questions
Is margin a cost?
No. Margin is a deposit held while the position is open and released when it closes. The cost of a position is the spread, any commission and the overnight swap.
Why did my broker's margin change overnight?
Brokers raise margin requirements before major events and over weekends. Check the broker's notices and keep free margin generous.
Results are arithmetic on the figures you enter and reference exchange rates; check contract sizes and pip values against your broker's specification. General education, not advice.