Margin Calculator
Calculate required margin, leverage impact, and position sizing for your forex trades
💡 Quick Tip
Use this calculator to understand how much margin is required for your trades at different leverage levels. This helps you plan your risk management and avoid margin calls.
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Understanding Margin & Leverage
Learn the fundamentals of forex margin trading
What is Margin in Forex?
Margin is the amount of money required to open and maintain a forex position. It's not a cost—it's a deposit held by your broker to ensure you can cover potential losses. When you close a trade, the margin is released back to your account.
Understanding Leverage
Leverage allows you to control large positions with a small amount of capital. For example, 1:100 leverage means you can control $100,000 with just $1,000. While this amplifies profits, it equally amplifies losses. Use leverage responsibly.
Margin Call & Stop Out
A margin call occurs when your account equity falls below a certain percentage of used margin (typically 100%). A stop out occurs when you fall below 50%, and your broker may automatically close positions to protect you from further losses.
Safe Leverage Guidelines
Professional traders typically use 1:10 to 1:20 leverage. Beginners should never exceed 1:50. Higher leverage (1:200+) is for experienced traders with strict risk management. Consider your account size, risk tolerance, and trading experience when choosing leverage.