# Margin Calculator

Calculate the margin required to open & maintain your forex trading positions

Currency Pair

Account Currency

Leverage

Number of Lots

Required Margin

US\$0.00

Note: Margin & leverage changes according to category of instrument. Gold & commodities for instance will have different leverage rates to forex.

# How to use the margin calculator

1. Select your account's base currency

2. Choose the currency pair to trade

3. Select the leverage used

4. Enter the number of lots to trade

Then click calculate.

# Why use a margin calculator?

When trading on leverage and margin, you can trade larger lot sizes than the funds available in your trading account. Using a margin calculator when trading is important for several reasons:

Determine required margin

A margin calculator helps you calculate the required margin for a particular trade, taking into account factors including the currency pair being traded, the leverage set on your account, and the lot size. This enables you to know the amount you will need in your account to open a position.

Risk management

By calculating the required margin, you can assess risk better by controlling the trade size to avoid margin calls. A margin calculator can help you make informed decisions and manage exposure more effectively.

Utilize leverage effectively

Margin calculators can assist you in determining the appropriate leverage to use when trading.

Using a margin calculator allows you to determine the optimal trade size that maximizes potential returns while minimizing risk. Knowing the margin required for different lot sizes can help you adjust your positions accordingly.

# How is margin calculated in trading?

The margin requirement when trading is calculated based on the lot size (units traded), instrument and leverage used. The formula used to calculate the margin is as follows:

Margin Requirement = (Units Traded) / (Leverage Ratio)

The units traded is the volume of the trade, usually measured in lots, like micro lots (1,000 units), mini lots (10,000 units), or standard lots (100,000 units).

The leverage ratio indicates how many units you can buy for every unit in your trading account. For example, a leverage ratio of 500:1 means that for every \$1 in your trading account, you can trade up to \$500 in the market.

Each instrument has specific margin requirements and you can see this in the contract specification. For example, if you trade 1 standard lot of EUR/USD (100,000 units) with a leverage ratio of 500:1, the margin requirement would be (100,000) / 500 = 200 units of the base currency.

### Getting started is quick and simple

It only takes a few minutes, this is how it works

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