Margin Calculator
Estimate how much account equity your broker may set aside to open a Forex or metals position.
Estimated required margin
USD 1085.00
- Position size
- 100,000 units
- Notional value
- USD 108500.00
- Margin rate
- 1.00%
- Leverage
- 1:100
How this calculation works
What margin does this simple leverage model require for the selected position?
Formula in plain language
- Position units = lots × contract size.
- Account-currency notional = position units × market price × conversion rate.
- Required margin = account-currency notional ÷ leverage.
- Margin rate (%) = 100 ÷ leverage.
What the terms mean
- Notional
- The full modeled value of the position, not the amount deposited as margin.
- Leverage and margin
- For 50:1 leverage enter 50. Margin is the modeled amount set aside to support exposure, not the maximum possible loss.
- Conversion rate
- Account-currency units per quote-currency unit; use 1 for matching currencies.
Worked example
This is a fixed teaching example, separate from your current inputs.
Choose EUR/USD, USD, 0.10 lots, market price 1.1000, leverage 50 and conversion 1.
- Units: 0.10 × 100,000 = 10,000.
- Notional: 10,000 × 1.1000 × 1 = USD 11,000.
- Margin: 11,000 ÷ 50 = USD 220.
- Margin rate: 100 ÷ 50 = 2%.
Example result: USD 220.00 required margin for USD 11,000.00 notional exposure.
What the result means
The margin is much smaller than the full exposure. Do not confuse that smaller amount with a loss limit: the market moves against the whole position.
What this does not tell you
Actual brokers can use tiers, symbol-specific rules and different conversion methods. This tool does not model equity, free margin, liquidation or stop-out levels, and it is not a leverage recommendation.