Forex Margin Calculator: Work Out the Margin for Your Trade

Use this forex margin calculator to work out how much margin a trade needs before you open it. Enter your lot size, contract size, leverage and account currency, and the calculator shows the margin with the working.

What Margin Is

Margin is the money set aside from your account to open and hold a trade that uses leverage. It is not a fee. When you close the trade, the margin is free to use again.

While a trade is open, its margin is tied up. You cannot use that money to open other trades. For definitions of margin, free margin and leverage, see Forex Trading Terminology: Key Terms Explained.

How the Forex Margin Calculator Works

The calculator works in two steps.

Step 1: margin in the base currency = lot size × contract size ÷ leverage

Step 2: margin in your account currency = margin in the base currency × conversion rate

The base currency is the first currency in the pair. In EUR/USD, it is the euro. The conversion rate turns that amount into your account currency.

What Each Input Means

Lot Size

The size of your trade in lots, as shown on your order ticket. For example, 0.1 or 1.

Contract Size

The number of units of the base currency in one lot. For a standard forex lot, this is 100,000 units. The calculator starts with 100,000, but you can change it to match your platform.

Leverage

Leverage is written as a ratio, such as 1:50. In the calculator, enter only the second number. For 1:50, enter 50.

Leverage is set by your account and can be different for each symbol. Check it in your platform before you use the calculator.

Account Currency

The currency your account balance is shown in. The calculator asks how it relates to the pair you trade. The next section explains why.

How Your Account Currency Changes the Maths

There are three cases.

Your Account Is in the Base Currency

Example: you trade USD/JPY, and your account is in US dollars. The margin from step 1 is already in your account currency. The conversion rate is 1.

Your Account Is in the Quote Currency

Example: you trade EUR/USD, and your account is in US dollars. The quote currency is the second currency in the pair. Here, the conversion rate is the price of the pair.

Your Account Is in Another Currency

Example: you trade GBP/USD, and your account is in euros. Here, you need the rate that turns one unit of the base currency into your account currency. For this example, that is the GBP/EUR rate.

Worked Examples

These examples use made-up leverage and made-up prices. They show the maths, not the terms of any account.

Example 1: Account in the Quote Currency

• Pair: EUR/USD at 1.1000. Account currency: USD.
• Lot size: 0.1. Contract size: 100,000. Leverage: 1:50.

Step 1: 0.1 × 100,000 ÷ 50 = 200 euros. Step 2: 200 × 1.1000 = $220.

Example 2: Account in the Base Currency

• Pair: USD/JPY. Account currency: USD.
• Lot size: 0.2. Contract size: 100,000. Leverage: 1:50.

Step 1: 0.2 × 100,000 ÷ 50 = 400 US dollars. Step 2: 400 × 1 = $400.

Example 3: Account in Another Currency

• Pair: GBP/USD. Account currency: EUR.
• Lot size: 0.1. Contract size: 100,000. Leverage: 1:50.
• Made-up rate: 1 British pound = 1.15 euros.

Step 1: 0.1 × 100,000 ÷ 50 = 200 British pounds. Step 2: 200 × 1.15 = €230.

Where to Find Your Leverage and Margin Rate

Your platform shows the details for each symbol. Look in the symbol's contract details or specification window.

Some platforms show leverage as a ratio, such as 1:50. Others show a margin rate as a percentage. The two are linked:

Margin rate = 1 ÷ leverage

For example, a margin rate of 2% is the same as leverage of 1:50, because 1 ÷ 50 = 0.02.

Different symbols can have different margin rates. Check the details for the exact symbol you plan to trade.

Margin, Free Margin and Margin Calls

Each open trade uses margin. The margin you are not using is your free margin.

Free margin = equity − margin in use

Example with made-up numbers: your equity is $1,000. You open the trade from example 1, which uses $220 of margin. Your free margin is $780.

If your trades lose money, your equity falls, and so does your free margin. If equity falls too far compared with the margin in use, your platform can send a margin call. If it falls further, it can reach the stop out level, and the platform starts to close trades. Each provider sets its own levels.

Margin Is Not Your Risk

Margin tells you how much money a trade ties up. It does not tell you how much you can lose.

Your loss on a trade depends on your trade size and how far price moves against you. A trade with a small margin can still lose more than its margin if price moves far enough.

To plan your risk, use your stop loss distance and trade size, not your margin. Learn more in [INTERNAL LINK: Day Trading Stop Loss Explained].

Using the Calculator on a Funded Account

FXIFY offers funded forex and CFD accounts. On a funded account, check the leverage set for your account and for each symbol in your platform. Enter that number in the calculator.

The margin result shows how much of the account a trade ties up. It does not show how close a trade brings you to the account's loss limits. Check those limits for your program on the FXIFY programs page.

FAQ

Does Higher Leverage Mean More Risk?

Higher leverage lowers the margin each trade needs. This lets you open larger trades with the same money. Larger trades gain or lose more for each pip, so your possible losses grow with your trade size.

Why Does My Platform Show a Different Margin?

Your platform may use a different margin rate for that symbol, or a live conversion rate. Some platforms also treat opposite trades on the same pair in a different way. Use the margin your platform shows as the final number.

Do I Get My Margin Back?

Margin is not a fee, so it is not spent. When you close the trade, it is no longer tied up. Your balance then changes only by the gain or loss on the trade and any costs.

Can I Use This Calculator for Indices or Gold?

Yes. Enter the contract size and leverage for that symbol from your platform's contract details. If the symbol is priced in US dollars and your account is in US dollars, choose the second-currency option and enter the symbol's price.

Example with made-up numbers: 0.1 lots of gold, a contract size of 100 ounces, leverage of 1:20 and a price of 2,400. The margin is 0.1 × 100 ÷ 20 × 2,400 = $1,200.