Free calculator · USD accounts
Margin Calculator
How much of your balance a position ties up as margin at a given leverage.
- Margin required
- $2,160.00
- Position value
- $108,000.00
- Margin as % of position
- 2.00%
Brokers may ask for more margin than this around news, weekends or on large positions.
How it works
- Position value
lots × lot units × price (in USD)- Margin
position value ÷ leverage
Worked example
- One lot of EUR/USD at 1.0800 is worth 100,000 × 1.08 = $108,000.
- At the US retail limit of 50:1, margin is $108,000 ÷ 50 = $2,160.
- At 500:1 on an offshore account it would be $216, but the position, and the risk, are the same size.
Leverage changes the deposit, not the risk
Higher leverage lets you open the same position with less money set aside. It does not change what each pip is worth. The danger is that it lets you open far larger positions than your balance can absorb.
In the US, NFA rules cap retail forex leverage at 50:1 on major currency pairs and 20:1 on all others. US retail forex dealers do not offer spot gold, so US traders usually trade gold through futures, where margin is set by the exchange.
Questions
What is a margin call?
A warning that your equity has fallen close to the margin your positions need. If it keeps falling to the broker's stop-out level, positions are closed automatically.
Which pairs count as major in the US?
Under NFA rules, pairs made only of the US dollar, euro, British pound, Japanese yen, Swiss franc, Canadian dollar, Australian dollar, New Zealand dollar, Swedish krona, Norwegian krone and Danish krone get 50:1. Every other pair is capped at 20:1.
Is free margin the same as balance?
No. Free margin is your equity minus the margin already in use. It is what is left to open new trades or absorb losses.