Margin Calculator

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 1.0850 has a notional of 108,500 USD. At 1:100 leverage the margin held is 108,500 ÷ 100 = 1,085 USD; at 1:500 it is 108,500 ÷ 500 = 217 USD. Lot size, the instrument's price, the account currency, and the leverage are the only inputs — the stop distance and the direction of the trade play no part in it.

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 is worth about 10 USD per pip at 1:100 and at 1:500 alike — the leverage affects the deposit, not the exposure. At 1:100 that lot holds about 1,085 USD; at 1:500 it holds about 217 USD. 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. The leverage figure on its own is not the risk.

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, often 50%, is where the broker closes positions automatically to keep the account from going negative. 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.

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. On a 10,000 USD account with one position holding 1,085 USD, used margin is 1,085 USD and free margin is 8,915 USD. Open a second position holding 600 USD and used margin becomes 1,685 USD, free margin 8,315 USD. As losses accrue, equity falls and free margin shrinks even though used margin stays fixed.

It depends on the pair. When the account currency is the pair's base currency — a USD account trading USD/JPY — the notional is already in the account currency and the margin stays fixed for the life of the position. When conversion is needed — a USD account on EUR/USD, or any cross such as EUR/GBP — the margin amount drifts as the conversion rate moves. A standard lot of EUR/USD holding 1,085 USD at a price of 1.0850 holds about 1,100 USD if the pair rises to 1.1000. The change is small in normal conditions and larger on big positions held a long time.

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 1.0850 has a notional of 108,500 USD and holds 1,085 USD; a standard lot of GBP/USD at 1.2719 has a notional of 127,190 USD and holds about 1,272 USD; a standard lot of AUD/USD at 0.6581 holds about 658 USD. Same leverage, same lot size — the higher the base-to-account price, the larger the notional and the more margin reserved.