Margin Calculator
Calculate exactly how much margin you need to open a leveraged position. Know your capital requirement before you place the trade.
Units, shares, or contracts (1 standard forex lot = 100,000)
Current market price (e.g., 1.10000 for EUR/USD)
Enter your position size, price per unit, and leverage, then click Calculate margin to see how much capital you need to open the trade.
For educational purposes only. Not financial advice. Read full disclaimer
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Want the full context? See the full trade planning workflow →
Margin Formula
Position Value = Position Size × Price per Unit
Required Margin = Position Value ÷ Leverage
Margin % = (1 ÷ Leverage) × 100
At 50:1 leverage, your margin rate is 2% (1 ÷ 50 = 0.02 = 2%). At 10:1 leverage, your margin rate is 10%.
Worked Examples
Example 1: 1 standard lot of EUR/USD at 50:1 leverage
You want to trade 1 standard lot (100,000 units) of EUR/USD at a price of 1.10000 with 50:1 leverage.
- Position Value = 100,000 × 1.10000 = $110,000
- Required Margin = $110,000 ÷ 50 = $2,200
- Margin % = (1 ÷ 50) × 100 = 2%
- You need $2,200 in your account to control a $110,000 position.
Example 2: 500 shares of a $200 stock at 4:1 margin
You want to buy 500 shares of a stock priced at $200using 4:1 intraday leverage from your broker.
- Position Value = 500 × $200 = $100,000
- Required Margin = $100,000 ÷ 4 = $25,000
- Margin % = (1 ÷ 4) × 100 = 25%
- You need $25,000 in buying power to open this $100,000 position.
How to Use This Calculator
- Enter your position size — the number of units, shares, or contracts you plan to trade. For forex, enter units directly (1 standard lot = 100,000 units).
- Enter the price per unit — the current market price of the instrument. For EUR/USD, this is the exchange rate (e.g., 1.10000).
- Set your leverage — use the quick presets (10:1, 20:1, 50:1, etc.) or enter the exact leverage your broker offers for this instrument.
- Click Calculate — the result shows your required margin in dollars, your total position value, and the effective margin percentage.
- Compare against your account balance — make sure you have enough free margin to open the trade and still withstand normal market fluctuations. Use the Leverage Calculator to assess overall risk exposure.
Frequently Asked Questions
- What is margin in trading?
- Margin is the amount of capital your broker requires you to deposit as collateral to open and maintain a leveraged position. It is not a fee — it is a portion of your account equity set aside to cover potential losses while the trade is open.
- What is the difference between initial margin and maintenance margin?
- Initial margin is the capital required to open a position. Maintenance margin is the minimum equity you must keep in your account while the position is open. If your account equity falls below the maintenance margin, your broker will issue a margin call and may automatically close your position.
- What happens if I get a margin call?
- A margin call occurs when your account equity falls below the required maintenance margin. Your broker will notify you to deposit more funds or reduce your position. If you don't act quickly, brokers may liquidate part or all of your positions at the current market price — often at an unfavorable time.
- Does this calculator work for stocks?
- Yes. For US equities, typical broker margin is 2:1 overnight (50% margin requirement) and 4:1 intraday. Enter your shares as the position size, the stock price as price per unit, and your broker's leverage ratio. The required margin result is your minimum buying power needed.
- How much free margin should I keep?
- Professional risk managers typically recommend keeping at least 50% of your account as free margin (unused). This buffer absorbs adverse price moves without triggering a margin call. Trading close to your margin limits is one of the most common causes of preventable losses.