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Forex margin calculator

Margin is the deposit your broker holds while a position is open. This shows how much a trade will lock up, and how close that leaves you to a margin call.

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Short answer

Required margin = position size in units ÷ leverage, converted into your account currency. One standard lot of EUR/USD at 1:100 leverage ties up about €1,000, roughly $1,085. The rest of your balance stays as free margin.

Key takeaways

  • Margin is collateral, not a cost. It is released back to you when the position closes; it is not a fee and it is not deducted from your balance.
  • Margin level = equity ÷ used margin × 100. Brokers issue a margin call around 100% and start force-closing positions at their stop-out level, often 50%.
  • Higher leverage lowers the margin a position requires. It does not change how much you lose per pip, which is set entirely by position size.
  • Regulated leverage caps differ sharply by jurisdiction. 1:30 for retail clients in the EU and UK, far higher offshore.

What margin is, and what it is not

When you open a leveraged position, you are not paying for it. Your broker sets aside a portion of your balance as a good-faith deposit against the position and returns it in full when you close. That set-aside amount is the margin.

The distinction matters because margin is routinely confused with risk. Opening one lot of EUR/USD at 1:100 uses about $1,085 of margin, but the amount you can lose is decided by where your stop is, not by the margin figure. A 20-pip stop on that position risks $200. Margin and risk are unrelated numbers that people conflate constantly.

What margin does control is how many positions you can hold at once, and how much adverse movement your account can absorb before the broker intervenes.

Margin level, margin calls and stop-outs

Your margin level is equity divided by used margin, expressed as a percentage. Equity is your balance plus or minus the floating profit on open positions, so the number falls as trades move against you.

Two thresholds matter. The margin call level, commonly 100%, is where the broker warns you and blocks new positions. The stop-out level, commonly 50%, is where the broker starts closing your positions automatically (usually the biggest loser first) until the level recovers. Both are set by the broker and both are in the account terms.

Being stopped out by the broker is materially worse than being stopped out by your own stop-loss: you lose control of which position closes and at what price. Keeping the margin level comfortably above 300% and sizing positions off risk rather than off available margin is what keeps that scenario theoretical.

Leverage limits by jurisdiction

Retail leverage is capped by regulators, and the caps vary enormously:

Region / regulatorTypical retail cap on major FX
European Union (ESMA), United Kingdom (FCA)1:30
Australia (ASIC)1:30
United States (CFTC/NFA)1:50
Many offshore jurisdictions1:500 to 1:2000 or unlimited

Gold, indices and minor pairs are usually capped lower than majors even within the same regime. Your actual limit depends on which entity of your broker holds your account, which is why the same brand can offer 1:30 to one client and 1:1000 to another. The broker hub covers what to check before opening an account.

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Written and reviewed by the MarketPro research desk

MarketPro is a trading-signal and trading-education app operated by Harajuku Holdings LTD (Cyprus). Our signal desk publishes and tracks every trade idea in-app, and every page here is checked against the app's live behaviour before publishing. Last reviewed . How we produce signals and content · About MarketPro

FAQ

Forex margin calculator: questions

What happens if I run out of margin?
Your broker first issues a margin call, typically when the margin level reaches 100%, which blocks new positions. If the level keeps falling to the stop-out threshold (often 50%) the broker begins closing open positions automatically until the level recovers. You have no control over which trades close or at what price.
Does higher leverage mean more risk?
Not directly. Leverage sets the margin required, not the size of your loss per pip. What makes high leverage dangerous is that it removes the natural ceiling on position size: with 1:30, a small account simply cannot open a huge position, and with 1:1000 it can. The risk comes from taking that option, not from the ratio itself.
Is margin deducted from my balance?
No. It is reserved, not spent. Your balance is unchanged; your free margin falls by the amount reserved and is restored when the position closes. Only realised profit and loss actually change the balance.
How do I calculate margin for gold?
The same way, but the contract size is 100 ounces rather than 100,000 currency units. One lot of gold at $2,350 is a notional $235,000, so at 1:100 the margin is about $2,350. Select gold in the calculator above and it applies the correct contract size.
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