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Forex Margin Calculator

This margin calculator shows how much of your balance a leveraged position locks up, and why that figure is not the same thing as your risk.

Prepared by the PyxelTrade editorial desk. Updated 26 September 2026. Our research process

Margin calculator

Required margin
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Tiny coin on one side of a scale outweighing a large pile

A margin calculator tells you the deposit your provider holds back as collateral when you open a leveraged trade. Choose the pair, enter the price, your size in lots and the leverage available to you, and the required margin appears in US dollars.

The formula

Position value = lots × contract size × price (converted to USD)
Required margin = position value ÷ leverage
Margin level = equity ÷ used margin × 100%

A standard forex lot is 100,000 units of the base currency; a gold lot is commonly 100 troy ounces.

Worked examples (illustrative prices)

  • EUR/USD at 1.1000, 0.5 lots, 30:1: position value = 0.5 × 100,000 × 1.1000 = $55,000. Margin = 55,000 ÷ 30 ≈ $1,833.33.
  • Gold at $2,400 an ounce, 0.1 lots, 20:1: 0.1 × 100 oz = 10 oz, worth $24,000. Margin = 24,000 ÷ 20 = $1,200.

Margin level and close-out

Suppose your account equity is $2,000 with the EUR/USD position above open. Margin level = 2,000 ÷ 1,833.33 × 100 ≈ 109%. Under UK and EU retail rules, the provider must start closing positions when margin level falls to 50%, which here means equity of about $916.67. In other words, a loss of roughly $1,083 would trigger the close-out, and on a $55,000 position that is a move of only about 2%.

What the number does and does not tell you

Required margin shows how much of your balance is tied up, and therefore how much is free for other positions. It says nothing about how much you could lose. Risk depends on position size and the distance to your stop, which the position size calculator handles. Higher leverage lowers the margin needed but does not change the profit or loss per pip.

Retail caps in the UK and EU are 30:1 on major currency pairs and 20:1 on gold and non-major pairs; US retail forex is capped at 50:1 on majors. Offers far above these for retail clients usually come from firms outside those rules. Read how to choose a broker before trusting one.

Leverage magnifies losses as well as gains. Positions can be closed automatically at a loss when margin runs short.

Sources

  • European Securities and Markets Authority, CFD product intervention measures
  • UK Financial Conduct Authority, CFD rules for retail clients

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