Calculate the required margin for your forex positions based on lot size and leverage
The margin required is calculated based on your position size, leverage, and the current exchange rate.
Select your account currency and the leverage ratio provided by your broker. Higher leverage means less margin required, but also increases risk.
Choose the currency pair you want to trade and select your position size (lot size). The standard lot size is 1.0, which represents 100,000 units of the base currency.
Click the "Calculate Margin" button to determine the amount of margin required for your specified trade parameters.
Review the required margin and margin percentage. Make sure you have sufficient funds in your trading account to cover the margin requirements before placing the trade.
Margin is the amount of money required in your account to open and maintain a leveraged trading position. It serves as a good faith deposit or collateral to cover potential losses.
While higher leverage allows you to control larger positions with less capital, it also increases risk. A small market movement can have a proportionally larger impact on your trading account.
If your account equity falls below the required margin level, you may receive a margin call requiring you to deposit additional funds. If the market continues to move against you, positions may be automatically closed to prevent further losses.
