Forex margin calculator
Margin is the deposit your broker locks to open a leveraged position. Enter your pair, size and leverage to see exactly how much of your balance a trade will tie up.
By the TradeFather education team · Updated 27 Oct 2026 · Educational content, not financial advice
Margin calculator
Margin is a deposit, not a cost — but if the trade moves against you, losses come out of your whole balance, not just the margin. Higher leverage means a smaller margin and a faster path to a margin call.
Results assume a USD account and 100,000-unit standard lots. Brokers can differ on contract size, spreads and commission, so confirm with your platform's own specification before trading.
- Margin = (lots × 100,000 × base currency value in USD) ÷ leverage.
- Margin is locked, not spent — but losses come out of your whole balance.
- Higher leverage means less margin per trade and less room before a margin call.
How margin is calculated
Required margin = notional position value ÷ leverage. The notional value is your lot size × 100,000 units × the base currency's value in USD.
Example: 0.10 lots of EUR/USD at 1.0800 with 1:30 leverage. Notional = 0.10 × 100,000 × 1.08 = $10,800. Margin = $10,800 ÷ 30 = $360.
| Leverage | Margin for 0.10 lot EUR/USD (≈$10,800) | Move that wipes the margin (approx.) |
|---|---|---|
| 1:10 | $1,080 | 10% |
| 1:30 | $360 | 3.3% |
| 1:100 | $108 | 1% |
| 1:500 | $21.60 | 0.2% |
Margin call and stop-out, in plain words
If your open losses eat into your balance, the broker first warns you (margin call) and then closes positions automatically (stop-out) so your account cannot go negative. With very high leverage, a small price move can trigger this quickly.
Regulators in the EU, UK, US and elsewhere cap retail leverage (commonly 1:30 on majors) for exactly this reason. Offshore brokers offering 1:500 or more are offering speed, not safety.
Frequently asked questions
+Is margin a fee?
No. Margin is returned when the trade closes. Your real costs are spread, commission and swap; your real risk is the price moving against the full position size.
+What leverage should a beginner use?
Lower is safer. Many educators suggest effective leverage of 1:5 or less while learning, regardless of what the broker offers.
+Why does the pair matter for margin?
Margin is charged on the notional value in your account currency, so the base currency's exchange rate changes the number.