Margin & Leverage Calculator
Know exactly how much margin you need before you open a trade. Calculate required margin, free margin, and max position size for any leverage level.
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Margin Analysis
Understanding Margin & Leverage
Leverage amplifies both gains and losses. Know your numbers before you trade.
How Leverage Works
With 1:100 leverage, $100 controls $10,000 in the market. This multiplies your buying power - but it also multiplies your risk. A 1% market move against you can wipe 100% of your margin.
Margin Calls Explained
A margin call happens when your equity drops below the required margin. Most brokers set this at 100% margin level. It means you need to add funds or close positions before they do it for you.
Safe Leverage Levels
Professional traders rarely use more than 1:50 on major pairs. Higher leverage means smaller market moves can trigger margin calls. Use our Position Size Calculator to find safe position sizes.
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Margin & Leverage Questions
Common questions about margin requirements and leverage in forex
What is margin in forex trading?
Margin is the amount of money required in your account to open and maintain a leveraged position. It's not a fee or transaction cost - it's a security deposit that's returned when you close the trade. For example, with 1:100 leverage on a $100,000 position, you need $1,000 margin.
What is free margin?
Free margin is the money in your account available to open new positions. It's calculated as Equity minus Used Margin. Higher free margin means you can take more trades. When free margin reaches zero, you cannot open new positions.
What happens when margin level is too low?
Most brokers issue a margin call when your margin level drops below 100% - meaning your equity equals your used margin. If it drops further (typically below 50-80% depending on the broker), they will automatically close your positions to prevent further losses.
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