Calculate the margin required to open & maintain your forex trading positions
Number of Lots
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.
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:
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.
How is profit or loss calculated in Forex trading?
Profit or loss is calculated based on the difference between the entry and exit prices of the trade, multiplied by the trade size. If the exit price is higher than the entry price for a long position, you'll make a profit, and vice versa. For a short position, you'll make a profit if the exit price is lower than the entry price.
Here's the general formula for calculating profit or loss:
For example, if you buy EUR/USD at 1.1000 and sell at 1.1500, the difference in price is 0.05. If the volume of the trade was one standard lot (100,000 units), the profit would be calculated as follows.
0.05 x 100,000 = 5,000. This means that the profit from this trade would be $5,000.
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Trade responsibly: CFDs are complex instruments and come with a high risk of losing all your invested capital due to leverage.