Forex Margin Requirement Calculator

Forex Margin Requirement Calculator

Leverage lets forex traders control a position far larger than their deposited capital. This calculator shows exactly how much of your own money (margin) must be set aside to open a given position at a given leverage ratio.

Margin Required = Position Size / Leverage Ratio

Example

A $100,000 position at 50:1 leverage requires:

Margin = 100,000 / 50 = $2,000 (2.0% margin)

Frequently Asked Questions

Does higher leverage mean higher risk? Leverage magnifies both gains and losses relative to the margin actually deposited - it does not change the dollar risk on the underlying position itself, but it does mean a smaller adverse price move can wipe out the deposited margin entirely, triggering a margin call or automatic position closure.

Is margin the same as a fee? No. Margin is collateral, not a cost - it is returned to your account when the position is closed (minus or plus any trading profit or loss).

What leverage ratios are common? Retail forex brokers commonly offer leverage ranging from 20:1 up to 500:1 or more depending on jurisdiction and regulatory limits, which vary significantly between regions.