Margin Calculator
Calculate required margin, free margin, and margin level for any forex or CFD position. Essential for avoiding margin calls.
What Is Margin in Forex Trading?
Margin is the amount of money your broker requires you to deposit as collateral to open and maintain a leveraged trading position. It is not a fee or transaction cost — it is a portion of your account equity that is "locked up" while the position is open. When you close the position, the margin is released back to your account.
Margin allows you to control a larger position than your account balance would normally permit. With 1:100 leverage, $1,000 in margin controls a $100,000 position. This amplifies both profits and losses proportionally.
Margin % = (1 / Leverage) × 100
Free Margin = Account Equity − Used Margin
Margin Level = (Account Equity / Used Margin) × 100%
Margin Requirements by Leverage
| Leverage | Margin % | Margin for 1 Std Lot ($100K) | Regulation |
|---|---|---|---|
| 1:500 | 0.2% | $200 | Offshore brokers |
| 1:200 | 0.5% | $500 | Non-EU regulated |
| 1:100 | 1.0% | $1,000 | Standard retail |
| 1:50 | 2.0% | $2,000 | US (NFA) |
| 1:30 | 3.33% | $3,333 | EU/ESMA major pairs |
| 1:20 | 5.0% | $5,000 | EU/ESMA minor pairs |
How to Avoid Margin Calls
A margin call occurs when your account equity falls below the required margin level (typically 50–100% depending on broker). To avoid margin calls:
- Use proper position sizing — the lot size calculator ensures your positions are correctly sized relative to your account
- Set stop-losses on every trade — a stop-loss limits your maximum loss before it reaches margin call territory
- Never risk more than 1–2% per trade — multiple small losses are survivable; one oversized loss can trigger a margin call
- Monitor margin level — keep margin level above 200% at all times as a safety buffer
- Avoid overleveraging — just because your broker offers 1:500 leverage does not mean you should use it
Related Tools
- Lot Size Calculator — calculate correct position size from risk parameters
- Position Size Calculator — multi-asset position sizing
- Pip Calculator — calculate pip value for margin impact
- Risk Reward Calculator — evaluate R:R before entering
- Forex Signals — verified signals from $29.99/month
Collateral required to open a leveraged position. Not a fee — it's locked equity released when you close the trade. Required Margin = Position Size / Leverage.
When equity falls below required margin level (50-100%). Broker may auto-close positions. Avoid by using stop-losses, proper sizing, and keeping margin level above 200%.
Leverage is the ratio (1:100 = $1 controls $100). Margin is the dollar amount held as collateral. Higher leverage = lower margin per position. Margin % = 1/Leverage × 100.
At 1:100: $1,000. At 1:50: $2,000. At 1:30 (EU): $3,333. At 1:500: $200. Varies by leverage and broker. Use the calculator above for exact figures.