Free tool
Margin calculator
Free forex margin calculator: see the position value and the margin needed for any pair or gold at your leverage, with UK, EU and Australian retail caps.
Quick answer: margin = position value ÷ leverage. One standard lot of EUR/USD at 1.0850 is worth $108,500, so at 1:30 leverage the margin is $108,500 ÷ 30 = $3,616.67. Leverage lowers the deposit, not the risk: a 1% price move still changes the position's value by $1,085.
Margin required
- Position value (notional)
- Margin rate
- A 1% move against you
Illustrative prices. Type your platform's live price. Many platforms recalculate margin as the price moves.
How it's calculated
Margin is the deposit your broker locks while a position is open. It is the position value divided by your leverage. The position value, or notional, is the number of units times the price, converted into your account currency.
Margin = lots × contract size × price ÷ leverage, in your account currency
Worked example
You buy 0.5 lots of GBP/USD at 1.2700 on a US dollar account with 1:30 leverage. The position is 50,000 pounds, worth 50,000 × 1.27 = $63,500. The margin is $63,500 ÷ 30 = $2,116.67, which is 3.33% of the position value.
Now buy 0.2 lots of USD/JPY at 150.00 on the same account. The position is 20,000 US dollars. Your account is in dollars already, so the price does not change the value: $20,000 ÷ 30 = $666.67.
Retail leverage caps
In the UK, the EU and Australia, regulators cap the leverage a broker may give retail clients. For the instruments in this calculator:
- 1:30 on major pairs. In the UK and EU these are pairs made of two of USD, EUR, GBP, JPY, CHF and CAD. Australia also counts AUD.
- 1:20 on other currency pairs, such as NZD/USD, and on gold.
Brokers regulated elsewhere may offer 1:500 or more. That only lowers the deposit; it does nothing to limit your losses.
Common mistakes
- Treating margin as the cost or the maximum loss. It is a deposit. The loss depends on the full position size and how far the price moves.
- Using all of the free margin. If almost all your equity is locked as margin, a small move can trigger a margin call. The margin level calculator shows how much room you have.
- Assuming one leverage figure for every pair. Your account may say 1:30, but non-major pairs and gold are capped at 1:20 for retail clients in the UK and EU.
Frequently asked questions
Is margin the most I can lose?
No. Margin is only the deposit your broker sets aside while the trade is open. Your profit or loss is based on the full position value, so a loss can be far larger than the margin. In the UK, the EU and Australia, retail clients have negative balance protection, which stops the account going below zero, but you can still lose your whole deposit.
Does higher leverage mean more risk?
Higher leverage lowers the margin for the same trade, so it lets you open bigger positions with the same money. The risk comes from the size you choose. A 1-lot trade loses the same per pip at 1:30 or 1:500, but at 1:500 it is far easier to open a size the account cannot survive.
Why is the leverage cap different for AUD/USD?
UK and EU rules only treat pairs made of two of these currencies as majors: US dollar, euro, pound, yen, Swiss franc and Canadian dollar. AUD/USD and NZD/USD are therefore capped at 1:20 for retail clients there. Australian rules also count the Australian dollar as a major, so AUD/USD is 1:30 in Australia.
Why did my margin change while the trade was open?
The margin is a share of the position value, and the position value moves with the price. If you buy EUR/USD on a dollar account and the euro rises, the position is worth more dollars and needs slightly more margin. Some brokers also raise margin before weekends or big news.