Find the margin required to open a leveraged position. Enter the price, position size, leverage and conversion rate to your account currency.
What is margin?
Margin is the deposit your broker holds to keep a leveraged position open. With 1:30 leverage, you need about 3.33 percent of the position value as margin.
Formula
- Position value in USD = units × USD value of one base unit.
- Margin = position value ÷ leverage.
Worked example
One standard lot of EUR/USD (100,000 euros) at 1.0850 is worth 108,500 dollars. At 1:30 leverage, margin = 108,500 ÷ 30 = 3,616.67 dollars.
Leverage limits
Regulators in many countries cap retail leverage. In the European Union, ESMA rules limit retail leverage on major currency pairs to 1:30. Higher leverage increases risk as much as it increases potential return.
Frequently asked questions
How is forex margin calculated?
Position value in your account currency divided by the leverage.
What leverage is allowed for retail traders?
It depends on your country. In the EU and UK, major forex pairs are capped at 1:30 for retail clients.
What is a margin call?
A warning that your account equity has fallen too close to the margin needed. Brokers may close positions if it falls further.
Results are estimates for education and planning. Check contract specifications and costs with your broker before you trade. Disclaimer.
