Forex Margin Calculator
Work out the margin a position ties up at any leverage, what is left free, and the margin level that decides a stop out.
Rayner5 min read24 September 2026A margin calculator answers two separate questions. The first is how much cash a position locks up. The second, and more important one, is how much room is left before the broker starts closing positions for you.
The tool below covers both. Under it are the formula, the leverage limits that apply in different countries, what margin level and stop out mean, and the reason margin should never be used to decide position size.
A margin calculator shows how much of your balance a position ties up. Required margin equals the position value divided by the leverage. One standard EURUSD lot at 1.1000 is a position worth 110,000 dollars, so at 1:100 leverage it requires 1,100 dollars of margin.
The calculator
The margin level figure is the one to watch. It compares your balance with the margin already committed, and it is what a broker uses to decide when to close a position.
The formula
| Step | Calculation |
|---|---|
| Position value | Contract size multiplied by lots, multiplied by the price where the quote currency is the dollar |
| Required margin | Position value divided by leverage |
| Free margin | Equity minus used margin |
| Margin level | Equity divided by used margin, as a percentage |
For pairs where the dollar is the base currency, such as USDJPY, the position value is already in dollars, so the price does not enter the calculation.
Margin at different leverage
| Leverage | Margin for 1 EURUSD lot at 1.1000 | Margin for 0.10 lots |
|---|---|---|
| 1:30 | 3,667 dollars | 367 dollars |
| 1:50 | 2,200 dollars | 220 dollars |
| 1:100 | 1,100 dollars | 110 dollars |
| 1:500 | 220 dollars | 22 dollars |
Notice what does not change. At every one of those leverage settings, one lot still loses 10 dollars per pip. Leverage decides how much you must deposit, not how much you can lose.
Free margin and why it matters
Free margin is the part of the balance not committed to open positions. It absorbs floating losses, and when it runs out the broker starts closing trades. A position can be the right size on paper and still cause trouble if several are open at once.
| Situation | Effect on free margin |
|---|---|
| One position, small size | Plenty of room for normal swings |
| Several positions in correlated pairs | They move together, so losses arrive at the same time |
| A hedged pair of positions | Margin is still held on both sides at most brokers |
Leverage limits around the world
| Region | Typical retail limit on major pairs |
|---|---|
| European Union and United Kingdom | 1:30 |
| Australia | 1:30 |
| United States | 1:50 |
| Many offshore jurisdictions | 1:500 or higher |
Gold, indices and crypto carry lower limits than currency pairs almost everywhere. High leverage accounts are covered in our guide to high leverage forex brokers.
Margin against risk
These are two different numbers and confusing them is the most expensive mistake in retail trading. Margin is what the broker holds while the position is open. Risk is what the trade loses if the stop is hit.
| Position | Margin at 1:100 | Loss at a 30 pip stop |
|---|---|---|
| 0.10 lots EURUSD | 110 dollars | 30 dollars |
| 1 lot EURUSD | 1,100 dollars | 300 dollars |
| 5 lots EURUSD | 5,500 dollars | 1,500 dollars |
An account with 10,000 dollars can open all three. Only the first is a sensible size for that balance at a one percent risk per trade.
Margin call and stop out
| Margin level | What usually happens |
|---|---|
| Above 300 percent | Comfortable |
| Around 100 percent | Margin call warning, no new positions |
| Around 50 percent | Stop out, the broker starts closing positions |
Thresholds vary by broker, so check the account terms. The important point is that a stop out is not a choice: positions are closed at whatever price is available, usually at the worst moment.
Why margin is the wrong way to size a trade
Available margin tells you the largest position a broker will let you open. It says nothing about the largest position you should open. Those are different numbers, and the gap between them is where most accounts are lost.
Size should come from the stop distance and the amount you are prepared to lose, which is what the lot size calculator works out. Margin then simply confirms that the position fits in the account.
Keep reading
- Lot size calculator size a trade from the stop
- Forex profit calculator what a move is worth
- Drawdown calculator what a loss costs to recover
- Trading tools every calculator on the site
Frequently Asked Questions
How do you calculate required margin?
Divide the position value by the leverage. One EURUSD lot at 1.1000 is worth 110,000 dollars, so at 1:100 it needs 1,100 dollars of margin.
What is margin level?
Equity divided by used margin, shown as a percentage. It is the figure brokers use to decide when to issue a margin call or close positions.
What is a margin call?
A warning that equity has fallen close to the margin committed. Most brokers set it near 100 percent and start closing positions near 50 percent.
Does higher leverage increase risk?
Not by itself. It lowers the deposit required. Risk rises when the freed up margin is used to open a larger position.
What leverage is allowed where I live?
Usually 1:30 in the EU, UK and Australia, 1:50 in the United States, and much higher offshore. Gold and indices are normally capped lower.
Is margin a fee?
No. It is a deposit held while the position is open and returned when it is closed. The costs are spread, commission and swap.
Why did my broker close my trade?
Because the margin level fell below the stop out threshold, at which point positions are closed automatically to stop the account going negative.
