How is forex required margin calculated?

Required Margin = (Lot Size × Contract Size × Price) / Leverage. Example: 0.1 lot XAUUSD at price 3320 with 1:100 leverage = (0.1 × 100 × 3320) / 100 = $332 required margin.

What is margin level in forex trading?

Margin level = (Account Balance / Used Margin) × 100%. A healthy margin level is above 500%. Below 100% triggers a margin call on most brokers. Below 50% can trigger automatic stop out where the broker closes your positions.

What leverage is best for XAUUSD trading?

For XAUUSD (Gold) trading, 1:100 leverage is commonly used by retail traders. Higher leverage like 1:500 increases potential profit but also risk. Professional risk management suggests never risking more than 1-2% of account balance per trade regardless of leverage.

Margin Calculator

Required Margin & Leverage

Calculate how much margin your broker requires to open a position.

Calculate Margin

Account Balance ($)

Pair

Lot Size

Leverage

Required Margin

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Free Margin

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Margin Level

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Position Value

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Margin Used0%

Required MarginThe amount your broker locks as collateral to open the position. Formula: (Lot Size × Contract Size × Price) / Leverage

Free MarginAccount balance minus used margin. This is the amount available to open new trades or absorb floating losses.

Margin LevelBalance / Margin × 100%. Below 100% = margin call risk. Below 50% = stop out on most brokers.

Margin CallBroker warning at ~100% margin level. You must deposit funds or close trades or the broker may close positions automatically.

Margin & Leverage Explained

Required Margin = (Trade Size × Contract Size × Price) ÷ Leverage. Margin is the deposit your broker locks to open a leveraged position — it is not a fee. Higher leverage means less margin required but larger risk: a small adverse move can trigger a margin call.

Leverage	Margin required	Margin on $10,000 position
1:10	10%	$1,000
1:30	3.33%	$333
1:50	2%	$200
1:100	1%	$100
1:500	0.2%	$20

Retail brokers in the EU/UK cap forex leverage at 1:30 and gold at 1:20; offshore brokers may offer 1:500 or more. Regardless of leverage offered, professional traders size positions by risk per trade, not by maximum leverage available.

Frequently Asked Questions

How do I calculate margin in forex?

Required Margin = (Trade Size × Contract Size × Price) ÷ Leverage. Example: 1.0 lot EURUSD at 1.0850 with 1:100 leverage = (1 × 100,000 × 1.0850) ÷ 100 = $1,085 margin.

What is the difference between margin and leverage?

Leverage is the ratio (e.g. 1:100) that multiplies your buying power. Margin is the actual deposit locked to open the position. Higher leverage means lower margin required for the same trade size.

What is a margin call?

A margin call happens when your account equity falls below the required margin level, usually because open trades are losing. The broker may close positions automatically to prevent a negative balance.

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