Calculate required margin for forex, futures, and stock/CFD trades
Track margin usage across all your prop firm accounts
Sign Up FreeMargin is the collateral required by your broker to open and maintain a leveraged position. It is not a fee or a cost -- it is a portion of your account equity that is set aside as a deposit. When you close the trade, the margin is released back into your account. Think of it as a good-faith deposit that ensures you can cover potential losses on the trade.
A margin call occurs when your account equity falls below the required margin level, typically when your margin level drops below 100%. At this point, your broker may require you to deposit additional funds or close some positions to restore your margin level. If you fail to meet the margin call, the broker can automatically close your losing positions -- often at the worst possible time. Most brokers set a stop-out level (commonly 50% margin level) where positions are forcibly liquidated.
Leverage and margin are two sides of the same coin. Leverage is expressed as a ratio (e.g., 1:100), while margin is expressed as a percentage (e.g., 1%). The relationship is simple: Margin % = 1 / Leverage. With 1:100 leverage, you need 1% of the total position value as margin. Higher leverage means lower margin requirements, which lets you control larger positions with less capital -- but it also amplifies both gains and losses proportionally.
Free margin is the amount of equity in your account that is not tied up as collateral. It equals your equity minus used margin. Free margin is what you have available to open new positions or absorb floating losses. Margin level is calculated as (Equity / Used Margin) x 100%. A margin level of 200% means your equity is twice the required margin -- generally considered safe. Below 100% means your losses have exceeded your available margin, triggering a margin call.
Forex (USD quote pairs like EUR/USD): Margin = (Lots x 100,000 x Price) / Leverage
Forex (USD base pairs like USD/JPY): Margin = (Lots x 100,000) / Leverage
Futures: Initial margin amounts are set by the exchange (CME) and vary by contract. This calculator uses approximate initial margin values. Actual margins may differ by broker.
Stocks / CFDs: Margin = (Shares x Price) / Leverage
Free Margin: Account Balance - Used Margin
Margin Level: (Account Balance / Used Margin) x 100%
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