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Leverage & Margin Calculator

A margin calculator that shows how much of your own money a leveraged position locks up, at whatever leverage ratio applies to you.

Researched and edited by TradoGlobal. Updated 26 September 2026. Our research process

Margin calculator

Required margin
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Glass euro symbol and a glass dollar symbol balanced on a sleek scale

This margin calculator shows the collateral a provider holds while your position is open. Margin is not a fee; it is a deposit. But the less of it you post relative to the position, the faster losses eat into it.

The formula

Required margin = lots × contract size × price ÷ leverage
Contract size: 100,000 units for currencies, 100 ounces for gold.
The result is in the quote currency and converted to USD where needed.

A worked example

Illustrative figures: 0.5 lots of GBP/USD at 1.2700. The position is 50,000 pounds, worth 50,000 × 1.2700 = $63,500.

  • At 30:1, the UK and EU retail cap on major pairs: $63,500 ÷ 30 = about $2,116.67.
  • At 50:1, the US retail limit on major pairs: $63,500 ÷ 50 = $1,270.

With $2,116.67 of margin in use, a UK or EU provider must start closing positions once your equity falls to half of that, about $1,058.33, which is a 50% margin level.

Margin needed for a $100,000 position

Required margin at each leverage ratio. The ratios match the UK and EU retail caps, plus the US 50:1 limit on major pairs.

50:1$2,000
30:1$3,333
20:1$5,000
10:1$10,000
5:1$20,000
2:1$50,000

Reading the result

Compare the required margin with your account equity. The margin level (equity divided by used margin, as a percentage) tells you how much room is left before positions are closed. A position that uses most of your account leaves almost no room for normal price swings. Use the position size calculator to set the size from your risk, then check here that the margin is comfortably covered.

Higher leverage lowers the margin needed but not the risk: the profit or loss on the position is the same whatever leverage you use. Losses on leveraged products can be rapid.

Reader questions

Does higher leverage mean bigger losses?

Leverage itself does not change the profit or loss per pip; position size does. But high leverage lets you open much larger positions on the same deposit, which is how losses grow.

What is a margin call?

A warning that your equity has fallen close to the level needed to keep positions open. In the UK and EU, providers must begin closing retail positions at a 50% margin level.

Sources

  • European Securities and Markets Authority, product intervention measures on CFDs
  • US Commodity Futures Trading Commission, retail forex leverage limits

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