Margin Calculator
Calculates the margin a broker reserves when a leveraged forex position opens, at whatever leverage you set, and shows how far the position can move against you before a margin call and a stop-out trigger.
This page covers the calculation; it is not trading advice.
Margin calculator
Every change recalculates live — there is no submit button. Adjust an input or tap a scenario and every section updates.
Pre-filled with a fixed reference rate, not a live quote. Enter your broker's price.
Broker rules — margin call 100% · stop-out 50%
Margin level at which a broker flags the account. Conventions vary — many use 100%.
Margin level at which a broker closes positions automatically. Varies by broker — commonly between 20% and 50%.
$1,125.30
Margin held — 11.25% of your account
- pips until margin call887
- pips until the broker auto-closes944
- pips until wipeout1,000
- one normal day70
On EUR/USD, an illustrative normal day's range is about 70 pips — a move that size against you would take about 7.00% of your account. The broker's stop-out starts closing your position after 944 pips against you.
Pre-trade snapshot
The figures that decide whether free margin can absorb the move you expect.
- Required margin
- $1,125.30
- Margin commitment
- 11.25%Moderate
- Free margin after entry
- $8,874.70
- Stop-out distance
- 944 pipsBeyond a day's range
- Effective account leverage
- 11.25×
- Distance to zero equity
- 1,000 pips
If you got stopped out
What it takes to climb back if the broker's stop-out closes your whole position (some platforms close only part of it).
- Loss at auto-close
- $9,437.35
- Recovery needed
- 1,677.30%
- Profitable trades needed at 1% risk, 1:1 reward-to-risk
- 290 consecutive profitable trades at a 1:1 reward-to-risk ratio, each risking 1% of the current balance, recover this loss before trading costs.
Losing 94.37% to the auto-close point leaves $562.65. To get back to $10,000.00 from there, you would need a 1,677.30% gain on what is left.
Leverage comparison
Same instrument, same lot — only leverage varies. Tap a row to adopt it.
Same trade, different pair
Required margin and stop-out distance across the forex set at your current lot size and leverage. Tap a row to switch pairs.
Rates are fixed reference mid-rates, not live market prices; the selected pair uses your price and cross-rate inputs.
How the math works
The formula updates as you change inputs. The branch that applies depends on how the account currency relates to the pair.
- Account currency is the base currency — notional is already in USD
- No conversion step: the notional and the margin are in the account currency from the start, so the margin amount does not drift while the position is open. The distances to margin call and stop-out account for the other effect: profit and loss accrue in the quote currency and convert back at the new price, so as a long position falls each pip is worth more in the account currency, and the exact distance is shorter than pip value at entry suggests. A short position's distance is longer; the figures shown are for a long position.
- Account currency is the quote currency — multiply the EUR notional by the price to reach USD
- On platforms that revalue margin at the current rate, the margin in the account currency drifts as the price moves, because the {base} notional is fixed and the price is not. The distances to margin call and stop-out hold the margin at its entry value.
- Account currency is neither side — convert the EUR notional to USD at the EUR-to-USD rate
- The cross rate is your override when you set one. Otherwise the calculator converts through USD, using the price entered above where the pair is itself one leg of that route (EUR/USD on a GBP account) and the fixed reference rates for every other leg. The distances to margin call and stop-out hold each pip's value in the account currency at its entry value while the pair moves; with an override, that conversion is the override ÷ the pair's entry price.
How cross-currency calculations work
When your account currency doesn't match either side of the pair you're trading, the calculator converts your notional value and pip value into your account currency. This needs one reference rate — the rate between the pair's base currency and your account currency.
By default the calculator uses pinned reference rates. These were captured at a point in time and may differ from your broker's current quotes. Whenever a configuration needs a cross-currency conversion, a Cross-currency rate panel appears above the Leverage section so you can override the default to match your broker.
Once you set this rate, every cross-currency figure for a single trade (margin, pip value, free margin, and the distances to margin call and stop-out) uses it. Until then, the calculator converts through USD: where the pair is itself one leg of that route, it uses the price entered above, and every other leg uses the fixed reference rates. EUR/USD on a GBP account takes the entered price for both margin and pip value. USD/JPY on a EUR account takes it for pip value only, because its notional is already in US dollars and converts to euros at the fixed EUR/USD rate.
What this means for you
Your numbers, narrated.
Your $1,125.30 margin holds a position worth $112,530.00 — that's 11.3× your account equity. The broker keeps your margin reserved while the position is open and returns it when you close.
A 70-pip move against you, an illustrative normal day's range on EUR/USD, loses $700.00, which is 7.00% of your account. The stop-out triggers at 944 pips of adverse movement; in equity terms, that is a $9,437.35 loss before the broker starts closing the position automatically.
Recovering from that stop-out — back to $10,000.00 — requires a 1,677.30% gain on the $562.65 left. At 1% risk per trade on the current balance with a 1:1 reward, that is about 290 consecutive profitable trades before trading costs.
Concept web
Related reading
Related calculators
Common questions
What determines required margin?
Required margin is the position's notional value divided by the leverage. Notional value is the position size in base-currency units — one standard lot is 100,000 units — converted to the account currency. A standard lot of EUR/USD at 1.1253 has a notional of 112,530 USD. At 1:100 leverage the margin held is 112,530 ÷ 100 = 1,125.30 USD; at 1:500 it is 112,530 ÷ 500 = 225.06 USD. For a single position, lot size, the instrument's price, the account currency and the leverage are the inputs, and the stop distance plays no part. Direction matters only at the edges: MetaTrader 5 converts at the ask for a buy and the bid for a sell, and with an opposite position open on the same pair the broker's hedged-margin rule can reduce the margin, in some cases to zero.
How does leverage change required margin?
Higher leverage reduces the margin a broker reserves; it does not change how much the position gains or loses per pip. A standard lot of EUR/USD at 1.1253 is worth about 10 USD per pip at 1:100 and at 1:500 alike. At 1:100 that lot holds about 1,125 USD; at 1:500 it holds about 225 USD, and on a 10,000 USD account with a 50% stop-out the smaller margin moves the stop-out from about 944 pips away to about 989 pips, with the margin held at its entry value. The risk in higher leverage is indirect: a smaller margin requirement frees up balance, and a trader who then opens a larger position carries proportionally more risk per pip and a closer stop-out.
What is the difference between a margin call and a stop-out?
A margin call is a warning; a stop-out is an action. Most brokers express both as a margin level — equity divided by used margin, as a percentage. The margin call level, often 100%, is where the broker flags the account, asking for more funds or smaller positions. The stop-out level, commonly between 20% and 50%, is where the broker closes positions automatically to limit further losses. On a 10,000 USD account holding 1,000 USD in margin, a 100% call level triggers when equity falls to 1,000 USD and a 50% stop-out triggers at 500 USD. Both thresholds vary by broker.
What is the difference between required margin, used margin, and free margin?
Required margin is what a single position needs. Used margin is the sum of required margin across all open positions. Free margin is account equity minus used margin — the cushion still available to absorb losses or open further positions. Depending on the broker's terms, floating profit, floating loss or both can be left out of the equity behind this figure. On a 10,000 USD account with one position holding 1,125.30 USD, used margin is 1,125.30 USD and free margin is 8,874.70 USD. Open a second position holding 600 USD and used margin becomes 1,725.30 USD, free margin 8,274.70 USD. As losses accrue, equity falls and free margin shrinks. The loss itself does not change used margin; where the account currency differs from the base currency, the margin can move with the conversion rate, depending on the platform (see the next question). The calculator holds used margin at its entry value and changes it only if you change the price or rate input. Brokers set the margin rate and leverage and can change them, for example on larger positions, which also changes used margin.
Does required margin change while the position is open?
It depends on the pair and on the platform. When the account currency is the pair's base currency — a USD account trading USD/JPY — the notional is already in the account currency, so price moves leave the margin unchanged. When conversion is needed — a USD account on EUR/USD, or any cross such as EUR/GBP — platforms that revalue margin at the current conversion rate move it as that rate moves: a standard lot of EUR/USD holding 1,125.30 USD at a price of 1.1253 holds 1,150 USD if the pair rises to 1.1500. Other platforms fix the margin when the position opens, and whether it is recalculated later depends on the broker. On any pair, a broker that changes the leverage on an open position can change its margin too.
Why is required margin different across instruments at the same leverage?
Because the notional value differs. Margin is notional divided by leverage, and notional is the lot size times the price in the account currency. On a USD account at 1:100, a standard lot of EUR/USD at 1.1253 has a notional of 112,530 USD and holds 1,125.30 USD; a standard lot of GBP/USD at 1.3335 has a notional of 133,350 USD and holds 1,333.50 USD; a standard lot of AUD/USD at 0.6959 holds 695.90 USD. Same leverage, same lot size — the higher the base-to-account price, the larger the notional and the more margin reserved.