Risk
Forex Margin Calculator
Calculate required margin, notional value, margin level and effective leverage for a forex position at any leverage, in your account currency.
Margin is a deposit, not a cost
When you open a leveraged position the broker sets aside part of your equity as margin. It is returned when the trade closes. The amount depends on the position's full value and the leverage the broker allows for that instrument.
notional = lots × 100,000 × (base → account rate) required margin = notional ÷ leverage margin level = equity ÷ used margin × 100%
Worked example
One standard lot of EURUSD controls 100,000 euros. At 1:30 leverage, the broker holds 100,000 ÷ 30 ≈ 3,333 euros, which a USD account sees as that amount converted at the current EURUSD rate. At 1:500 the same trade ties up only 200 euros, yet the profit or loss per pip is identical: 10 USD.
Leverage limits you may run into
Regulators cap retail leverage in many places. Under ESMA and FCA rules, major currency pairs are limited to 1:30 and minors, gold and major indices to 1:20. Other jurisdictions and offshore brokers offer much more. Higher leverage does not make a trade riskier by itself; a larger position does. What it changes is how close you sit to a margin call.
Margin call and stop out
Brokers watch your margin level. A margin call often triggers at 100% and a stop out between 20% and 50%, when positions start closing automatically. The levels vary, so check your broker's terms. Effective leverage, the notional value of everything you hold divided by equity, is a better single gauge of account risk than the leverage setting.
Questions
How much margin do I need for one lot of EURUSD?
100,000 euros of notional divided by your leverage: about 3,333 euros at 1:30, 1,000 at 1:100 and 200 at 1:500, converted into your account currency.
Is higher leverage more risky?
Only if you use it to take larger positions. Risk per trade comes from position size and stop distance; leverage decides how much free margin is left as a buffer.
What is free margin?
Equity minus used margin. It is the room you have for new positions and for absorbing losses before a margin call.