Margin is the deposit your broker holds to keep a leveraged trade open — collateral, not a fee. This free margin calculator shows how much a position ties up, given your lot size, the price, and your leverage, so you can keep enough free margin to avoid a margin call.
Required margin calculator
Forex margin
Margin is shown in the pair's quote currency. Convert to your account currency at the current rate.
How it works
required margin = (lots × units per lot × price) ÷ leverage
The trade's notional value is your units multiplied by the price; dividing by your leverage gives the margin the broker holds. The result is in the pair's quote currency — for a pair quoted in your account currency it's the figure directly; otherwise convert at the current rate.
Worked example
- 1 standard lot = 100,000 units, price 1.10, leverage 1:100.
- Notional = 100,000 × 1.10 = 110,000 (quote currency).
- Required margin = 110,000 ÷ 100 = 1,100 (quote currency).
Lower margin from high leverage means a small move can wipe out a large share of your account. Regulators cap retail leverage (commonly 1:30 in the EU/UK/Australia, 1:20 in Singapore) for exactly this reason. Trade within your means — most retail traders lose money. Not financial advice.
Test margin and leverage safely
Open a free MT4 demo and see how margin moves as you change leverage and position size — with virtual money.
⚠ Trading forex and CFDs is high-risk and most retail traders lose money. This is not financial advice.
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Related tools & guides
Pair it with the pip calculator and lot size calculator, or read what MT4 is.
Frequently asked questions
What is margin in forex?
Margin is the deposit your broker sets aside to keep a leveraged trade open. It isn't a fee — it's collateral. With 1:100 leverage, for instance, you control a position worth 100 times the margin you put up.
How is required margin calculated?
Required margin = (trade size in units × price) ÷ leverage, in the quote currency. For one standard lot (100,000 units) at a price of 1.10 with 1:100 leverage, that's (100,000 × 1.10) ÷ 100 = 1,100 in the quote currency.
What is a margin call?
A margin call is a warning that your account no longer has enough free margin to support your open trades, usually because they've moved against you. If the level keeps falling, the broker may close positions (a stop-out) to protect itself. Keeping free margin high avoids this.
Does higher leverage mean less margin?
Yes — higher leverage reduces the margin needed to open the same position. But it also magnifies losses just as much as gains, which is why regulators cap retail leverage. More leverage is more risk, not free money.
Trading foreign exchange and contracts for difference (CFDs) carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. You could lose some or all of your deposited funds; do not trade with money you cannot afford to lose. Past performance is not indicative of future results. Nothing on MT4Download.com is financial, investment, or trading advice. Consider your circumstances and seek independent advice if needed.