Forex Margin Calculator — Required Margin & Free Margin

Using the Forex Margin Calculator takes under a minute. Enter five values: your account balance in dollars, the leverage ratio your broker provides (e.g. 1:100), the lot size you plan to trade, the current pair price (e.g. EUR/USD at 1.0850), and select whether you are trading standard, mini, or micro lots. Click "Calculate Margin" to see your results instantly.

The primary output is the required margin — the amount your broker will lock as collateral for the trade. You will also see your free margin (available funds after the trade opens) and your margin level percentage, colour-coded green for safe, yellow for warning, and red for danger (margin call risk).

The Max Lots figure shows the largest position your account can support at current leverage without exceeding your balance. Use this to understand the limits of your account before placing a trade.

The margin calculator uses four core formulas:

1. Notional Value: Notional = Lots × Lot Units × Pair Price
   Example: 1 standard lot × 100,000 units × 1.0850 (EUR/USD) = $108,500
2. Required Margin: Margin = Notional Value ÷ Leverage
   Example: $108,500 ÷ 100 = $1,085
3. Free Margin: Free Margin = Account Balance − Required Margin
   Example: $5,000 − $1,085 = $3,915
4. Margin Level: Margin Level (%) = (Account Balance ÷ Required Margin) × 100
   Example: ($5,000 ÷ $1,085) × 100 = 461%

Brokers typically issue a margin call when margin level falls below 100% and may automatically close positions (stop-out) at levels between 20–50%, depending on the broker. Always maintain a margin level well above 200% to absorb adverse price movements.

Example 1 — EUR/USD Standard Lot with 1:100 Leverage

A trader has a $5,000 account, uses 1:100 leverage, and wants to buy 1 standard lot of EUR/USD at 1.0850.

• Lot units: 1 × 100,000 = 100,000
• Notional value: 100,000 × 1.0850 = $108,500
• Required margin: $108,500 ÷ 100 = $1,085
• Free margin: $5,000 − $1,085 = $3,915
• Margin level: ($5,000 ÷ $1,085) × 100 = 461% — Safe

With 461% margin level, this account has substantial buffer. The price of EUR/USD would need to move significantly against the trader before approaching a margin call.

Example 2 — GBP/USD Mini Lot with 1:50 Leverage

A newer trader with a $2,000 account uses 1:50 leverage and trades 2 mini lots of GBP/USD at 1.2700.

• Lot units: 2 × 10,000 = 20,000
• Notional value: 20,000 × 1.2700 = $25,400
• Required margin: $25,400 ÷ 50 = $508
• Free margin: $2,000 − $508 = $1,492
• Margin level: ($2,000 ÷ $508) × 100 = 394% — Safe

Even with lower leverage, the smaller position size relative to account balance keeps the margin level comfortably safe. Always check your free margin before opening additional positions.