Margin Requirement Calculator
Category: Trading CalculatorsCalculate the required margin for your trades and understand your account's margin levels
Margin Calculation Results
Margin Allocation
Margin Level Projection
Account Summary
Margin Call Analysis
About Margin Requirements
Margin is the amount of funds that the broker requires from a trader as collateral to open a position. Understanding margin requirements is crucial for proper risk management and avoiding margin calls.
Margin Requirement
The minimum amount of equity required to open and maintain a position. It's typically calculated as a percentage of the position's value.
Margin Level
The ratio of equity to used margin, expressed as a percentage. A margin level below a certain threshold may trigger a margin call.
Free Margin
The amount of funds available to open new positions. It's calculated as equity minus used margin.
Margin Call
A warning from your broker that your account's margin level has fallen below the required minimum, often 50% or 100% depending on the broker.
Tips for Managing Margin
- Always maintain adequate free margin to avoid margin calls and forced liquidation.
- Consider using lower leverage to reduce your margin requirements and risk exposure.
- Monitor your margin level regularly, especially during volatile market conditions.
- Implement proper position sizing to ensure your margin utilization remains at a safe level.
- Set stop-loss orders to limit potential losses and protect your margin.
What this calculates
The deposit your broker holds against an open position.
- Formula
margin = (position size × price) ÷ leverage- Worked example
- A 100,000-unit EUR/USD position at 1.0850 on 30:1 leverage requires (100,000 × 1.0850) ÷ 30 ≈ 3,617 USD held as margin.
- When to use it
- Before opening, to check the position fits your free margin with room to spare.
- Common mistake
- Margin is not your risk — it is only what is locked up. A position can lose far more than its margin, which is how accounts get closed out.