Margin calculator
How does the margin calculator work?
The margin calculator finds the position's full value in US dollars and divides it by the leverage.
Required margin = position value ÷ leverage
For pairs like EUR/USD, one unit of the base currency is worth the pair's price in dollars. For pairs where the dollar is the base, such as USD/JPY, each unit is simply $1. For crosses, the calculator asks for the base currency's rate against the dollar.
Worked examples
Illustrative prices; leverage at the UK and EU retail caps.
- GBP/USD at 1.2700, 0.5 lots, 30:1: 50,000 × 1.27 = $63,500 position; $63,500 ÷ 30 ≈ $2,116.67 margin.
- Gold at $3,200, 0.1 lots (10 oz), 20:1: 10 × $3,200 = $32,000 position; $32,000 ÷ 20 = $1,600 margin.
How should you read the result?
Margin is a deposit held while the trade is open, not the most you can lose. Your profit or loss is based on the full position value. In the GBP/USD example, a 1% move is worth $635, about 30% of the margin.
Providers watch your margin level: equity divided by used margin. For retail clients in the UK and EU, positions are closed automatically once it falls to 50%. Using only a small part of your balance as margin leaves room for normal price swings. Size the trade by risk first with the position size calculator, then use this page to check the margin fits.
Retail leverage caps in the UK and EU: 30:1 on major currency pairs, 20:1 on other pairs, gold and major indices, 10:1 on other commodities, 5:1 on shares and 2:1 on crypto. The forex guide explains why.
What is the difference between margin and free margin?
Used margin is what open positions tie up. Free margin is what is left of your equity after that, and it is the buffer that absorbs losses on open trades. When free margin runs out, the margin level falls and positions start being closed. Keeping plenty of free margin is simply keeping a larger buffer between normal price swings and a forced close.