Forex Margin Calculator
Know exactly how much margin you need before placing a trade. Avoid margin calls by understanding your exposure.
Uses approximate exchange rates. Required margin may differ by broker. Margin call typically triggered at 100% margin level.
What is margin in forex trading?
Margin is the amount your broker requires as a deposit to open a leveraged position. It is not a fee — it is a portion of your own funds held as collateral. The broker uses it to cover potential losses while your trade is open.
The margin formula
With 100:1 leverage on EUR/USD at 1.08, a standard lot (1.0) requires $1,080 in margin. Your broker holds that $1,080 while your $108,000 position is open. The remaining balance in your account is your free margin — available for additional trades or absorbing floating losses.
Margin call and stop-out
A margin call occurs when your account equity falls below the required margin — typically expressed as a margin level percentage. Most brokers issue a warning at 100% margin level and automatically close positions (stop-out) at 50% margin level. Understanding your margin level before entering trades prevents forced liquidation.
Free margin vs used margin
- Used margin: Locked in open positions. Cannot be touched.
- Free margin: Available for new positions or to absorb losses.
- Margin level: Equity ÷ Used Margin × 100%. Below 100% = margin call zone.