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    Margin Calculator

    Calculate the margin required to open a trade based on lot size and leverage. Make sure you have sufficient margin before opening a position.

    Quick answer

    A margin calculator shows how much of your balance is locked to open a position of a given size at a given leverage. Choose the pair, lot size and leverage to see required margin and remaining free margin — the buffer that decides whether you can survive volatility without a margin call.

    Calculator

    Enter the details to calculate the required margin

    What Is Margin?

    Margin is the amount required as collateral to open a trading position. It depends on position size and leverage.

    Margin Formula:

    Margin = (Position Size × Exchange Rate) ÷ Leverage

    Example:

    • 1 lot EUR/USD trade
    • Exchange rate: 1.0850
    • 1:100 leverage
    • Margin: $1,085

    Warning:

    High leverage increases risk. Make sure you understand how margin works before trading.

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    How margin and leverage work, and how to read the result

    What required margin is

    Margin is the amount your broker locks as collateral to open a trade — not a fee. It returns to your free balance when the position closes. Required margin = (trade size × unit price) ÷ leverage, so at 1:100 a 100,000-unit standard lot locks about 1,000 units of the base currency.

    Leverage enlarges the position you can open with a small balance, but losses are still calculated on the full position. Treat leverage as financing, not as a profit multiplier: it scales gains and losses by exactly the same factor.

    Using the calculator and reading the numbers

    After required margin, the key figure is remaining free margin: it decides how much adverse movement you can absorb before a margin call or forced liquidation.

    • Pick the pair or asset and enter the size exactly as you will trade it.
    • Enter your account’s real leverage, not the maximum advertised.
    • Compare required margin with your balance — the higher the ratio, the less room for error.
    • If you plan several simultaneous trades, add all required margins first.
    • Always keep meaningful free margin to absorb spread widening around news.

    Margin calls and how to avoid them

    A margin call happens when your margin level drops below the broker’s threshold, requiring a deposit or triggering automatic liquidation. Usually the cause is not the market alone but oversized positions that lock most of the balance and leave no room for a temporary pullback.

    The practical rule: size from risk with the lot calculator, confirm here that locked margin stays a small share of your balance, then use the pip calculator for the value of each move. Before major data releases check the economic calendar, since sharp volatility widens spreads and eats free margin fast. Educational only, not investment advice.

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