Use the calculator above to determine the margin required to open a forex position. Select your currency pair, enter your trade size and leverage, and the calculator shows the margin you need in your account.
How to Use This Calculator
- Select a currency pair — choose the pair you plan to trade (e.g., EUR/USD, GBP/USD)
- Enter the exchange rate — the calculator pre-fills current approximate rates, but you can adjust to match your broker's quote
- Choose your leverage — select the leverage your broker offers (1:30 for EU-regulated brokers, up to 1:500 for offshore)
- Enter your trade size — the total position size in units (100,000 = 1 standard lot)
- Calculate — the result shows the margin required in your account currency
Understanding Forex Margin
Margin is the deposit your broker requires to open and maintain a leveraged position. You are not paying this amount — it is held as collateral while the trade is open.
The Margin Formula
Required Margin = (Trade Size / Leverage) × Exchange Rate
Where:
- Trade Size is the position volume in units (100,000 units = 1 standard lot)
- Leverage is the ratio your broker provides (e.g., 1:100 means you control $100 for every $1 of margin)
- Exchange Rate is the current price of the currency pair
Worked Example
Trading EUR/USD at 1.1246 with 1:100 leverage and a position size of $5,000:
(5,000 / 100) × 1.1246 = $56.23
You need $56.23 in your account to open this position.
Margin vs Free Margin vs Margin Level
| Term | Definition |
|---|---|
| Used Margin | The total margin currently held against open positions |
| Free Margin | Account equity minus used margin — the amount available to open new trades |
| Margin Level | (Equity / Used Margin) × 100% — if this drops below your broker's threshold (typically 50-100%), you receive a margin call |
Understanding the difference between these terms prevents unexpected margin calls. Use our Forex Leverage Calculator to see how different leverage levels affect your margin requirements.
How Leverage Affects Required Margin
Higher leverage means less margin per trade — but it also increases risk:
| Leverage | Margin for 1 Lot EUR/USD (at 1.0850) | Risk Level |
|---|---|---|
| 1:30 | $3,617 | Lower |
| 1:100 | $1,085 | Moderate |
| 1:200 | $543 | Higher |
| 1:500 | $217 | Very High |
EU-regulated brokers (FCA, CySEC, BaFin) cap retail leverage at 1:30 for major pairs under ESMA rules. Offshore brokers may offer 1:500+ but with weaker investor protection. See our regulation guides to understand what protection your broker's regulator provides.
Related Tools
- Forex Profit Calculator — calculate potential profit or loss before entering a trade
- Forex Leverage Calculator — determine how much leverage you need for your position
- CFD Margin Calculator — calculate margin for CFD trades on stocks, indices, and commodities
- Forex Compounding Calculator — project how reinvesting profits grows your account
Frequently Asked Questions
What is margin in forex trading?
Margin is the collateral your broker holds to keep a leveraged position open. It is not a fee or cost — the margin is returned to your available balance when the trade is closed. The amount required depends on your position size, leverage, and the currency pair's exchange rate.
How much margin do I need to trade 1 lot of EUR/USD?
At 1:100 leverage with EUR/USD trading at 1.0850, the required margin for 1 standard lot (100,000 units) is approximately $1,085. At 1:30 leverage (EU-regulated brokers), you would need $3,617.
What happens when I run out of margin?
When your margin level drops below your broker's minimum threshold, you receive a margin call. If you do not deposit additional funds or close positions, the broker may automatically close your trades at a loss. Most regulated brokers set the margin call level between 50% and 100%.
Is higher leverage always better?
No. Higher leverage reduces the margin per trade but amplifies both profits and losses. A 1:500 position can be wiped out by a smaller price movement than a 1:30 position. Regulated brokers cap leverage to protect retail traders — check your broker's regulator to understand the limits that apply to you.