What is margin in forex trading?

Margin is the deposit your broker sets aside to keep a leveraged position open. It is collateral, not a cost, and it is released when the position closes.

What happens if free margin runs out?

Once equity falls far enough relative to used margin, brokers issue a margin call and then close positions automatically at their stop-out level. Leaving a large buffer of free margin is what prevents forced liquidation.

Why does leverage differ between brokers?

Maximum retail leverage is set by the regulator covering your account, and brokers can apply stricter tiers on larger positions or volatile instruments. Always check the limit shown in your own account terms.

FX Vector Lab · Calculator

Margin calculator

Leverage decides how much of your balance a position locks up. Enter the trade size, price and leverage to see the margin required and what is left free afterwards.

Required margin

$3,616.67

Notional position value: $108,500.00
Margin requirement: 3.33 %
Free margin after entry: $6,383.33
Balance committed: 36.2 %
Units of base currency: 100,000

Margin = (units × price) ÷ leverage, assuming the quote currency matches your account currency. Brokers may apply tiered margin on larger positions.

How this calculator works

Required margin is the notional value of the position divided by leverage: margin = (units × price) ÷ leverage. At 1:30, a one-lot EUR/USD position worth roughly 108,500 requires about 3,617 in margin.

The figure that actually matters day to day is free margin — equity minus margin already in use. Free margin absorbs open losses. When it is thin, an ordinary retracement can trigger a margin call even though the original idea was still valid.

This calculator assumes the quote currency matches your account currency. For other combinations, convert the notional value at the current rate before reading the result.

Frequently asked questions

What is margin in forex trading?: Margin is the deposit your broker sets aside to keep a leveraged position open. It is collateral, not a cost, and it is released when the position closes.
What happens if free margin runs out?: Once equity falls far enough relative to used margin, brokers issue a margin call and then close positions automatically at their stop-out level. Leaving a large buffer of free margin is what prevents forced liquidation.
Why does leverage differ between brokers?: Maximum retail leverage is set by the regulator covering your account, and brokers can apply stricter tiers on larger positions or volatile instruments. Always check the limit shown in your own account terms.