Margin calculator
This margin calculator shows how much of your balance a broker would hold as collateral for a leveraged position. It helps you see how leverage turns a modest deposit into a large exposure, and how quickly that exposure can consume the account.
The margin formula
Required margin = position value ÷ leverage
For pairs with the dollar as the base currency, one unit is worth $1. For pairs quoted in dollars, such as EUR/USD or XAU/USD, multiply by the price. For crosses, the calculator asks for the base currency's rate against the dollar.
Worked examples with retail caps
| Position (illustrative prices) | Position value | Leverage | Margin |
|---|---|---|---|
| 1 lot EUR/USD at 1.08 | $108,000 | 30:1 | $3,600 |
| 1 lot USD/JPY | $100,000 | 30:1 | $3,333.33 |
| 1 lot EUR/GBP, EUR/USD at 1.08 | $108,000 | 20:1 | $5,400 |
| 1 lot gold (100 oz) at $2,300 | $230,000 | 20:1 | $11,500 |
The leverage levels match UK and EU retail caps: 30:1 for major pairs and 20:1 for non-major pairs and gold. US retail forex allows up to 50:1 on majors. Brokers can require more margin than the regulatory minimum, and often do around news or weekends.
What the margin calculator result does and does not mean
- Margin is not the maximum loss. Losses depend on position value and price movement. Without negative balance protection, they can exceed your deposit.
- Free margin matters. The balance left after margin is set aside absorbs losses. When equity falls to half the required margin, UK and EU rules require the broker to begin closing positions.
- Higher leverage is not cheaper. It reduces the collateral, not the risk. A 1% move on a $108,000 position is $1,080 whatever the leverage.
Pair this with the position size calculator, which sets size from your risk, and read how forex trading works for the wider picture.