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FX Handbook

Margin Calculator

A margin calculator shows how much of your account balance is set aside to open a leveraged forex position. Required margin equals the position's value in your account currency divided by your leverage.

How margin is calculated

Required margin
margin = position size (units) × base-to-account rate ÷ leverage

The base-to-account rate converts one unit of the pair's base currency (the first currency) into your account currency. For EUR/USD on a USD account it is simply the EUR/USD price.

Worked example

1 standard lot of EUR/USD at 1.1000, leverage 30:1, USD account:

100,000 × 1.1000 ÷ 30 = $3,666.67 margin.

Frequently asked questions

What is required margin in forex?

Required margin is the amount of your own money the broker sets aside to keep a leveraged position open. It equals the position’s notional value divided by the leverage.

Does higher leverage mean more risk?

Higher leverage lowers the margin needed to open a position, which lets traders open larger positions relative to their account. Larger positions mean larger gains and losses for the same price move.

Why is my leverage limited?

Regulators in many regions cap retail leverage, for example at 30:1 on major currency pairs in the EU and UK, and brokers may set their own lower limits. Check your broker’s current terms.

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Results are estimates for educational purposes and exclude spreads, commissions and swaps unless stated. Always confirm figures with your broker before trading.