Margin calculator
The margin your platform sets aside to open a position, for your volume and leverage, converted to your account currency.
How it's calculated
- Position value = lots × contract size, in the base currency, converted to your account currency.
- Margin = position value ÷ leverage.
- EUR/USD at 1.10, 1 lot, 1:100, USD account: 100,000 EUR = $110,000; ÷ 100 = $1,100.
- USD/JPY, 1 lot, 1:100, USD account: 100,000 USD ÷ 100 = $1,000, whatever the price.
- EUR/GBP, 1 lot, 1:100, USD account, EUR/USD at 1.08: 100,000 EUR = $108,000; ÷ 100 = $1,080.
Questions
Why does the margin depend on the base currency?
A lot is a fixed amount of the base currency — 100,000 euros for EUR/USD. Its value in your account currency, divided by the leverage, is the margin. That is why USD/JPY on a USD account needs the same margin at any price.
Is margin a cost?
No. It is part of your balance set aside while the position is open and released when you close it. Costs are the spread, commission and swaps.
Why does my platform show a different margin?
Platforms may use different leverage for different instruments, raise margin for large positions or around weekends, and use their own live prices for conversion. Enter the leverage and prices your platform uses.
Does higher leverage mean higher risk?
Leverage lowers the margin needed for the same position, so you can open larger positions with the same balance. The risk of a position depends on its size and stop-loss, not on the margin.