Margin Calulator

Why is margin important?

Opening a trade with too much margin can quickly lead to a margin call. Opening a trade with insufficient margin could lead to a profitable trade which has little impact on your trading account. Therefore, the margin required should be somewhere in between and according to your risk appetite.

What does 1:100 leverage in Forex mean?

If you open an account with $100 and have a leverage of 1:100, this means you have a trading margin of 100*100=$10,000. This could be used to open multiple trades or a single trade, depending on the trade size, while the sum of all used margin cannot go over $10,000.

How much margin do I have in my account?

That would depend on your account leverage and open positions.Each open trade in your account takes away from your available margin.

For example, a trade of 1 lot EURUSD would require $100,000 times the EURUSD rate in margin (to convert from base currency to deposit currency), so if price is 1.1912, this would mean a margin of $119,120, before leverage is applied.

So if you have an account balance of $100 and a leverage of 1:100, open positions with total margin of $5000, it would mean you’re left with 100*100-5000=$5,000 available margin.Keep in mind that although you can use higher leverage to increase available margin, this would also mean taking higher risks, so don’t always go for the highest available leverage a broker has to offer.