What is margin in trading?

Margin is the amount of money required to open a leveraged position. It acts as a deposit or collateral for the trade, allowing you to control larger positions with less capital.

How is margin calculated?

Margin = (Position Size × Asset Price) ÷ Leverage Ratio. For example, a $10,000 position with 10:1 leverage requires $1,000 margin.

What happens if I don't have enough margin?

If you don't have sufficient margin, you cannot open the position. If margin falls below maintenance levels during a trade, you may face a margin call or liquidation.

Margin Calculator

Calculate required margin for leveraged trading positions across forex, stocks, crypto, and commodities. Understand your margin requirements, utilization percentage, and risk levels before opening any position. Perfect complement to our position size and leverage calculators.

Real-time Calculations

Risk Assessment

Multi-Asset Support

Margin Utilization

💰 Margin Calculator

Calculate the margin required for your trading position

Account Balance

Your total trading account balance

Asset Type Choose your trading instrument

Position Size Number of units/shares/lots

Asset Price Current price per unit

Leverage Ratio

Higher leverage reduces margin but increases risk

Margin Requirements

Required Margin: $5,000

Position Value: $50,000

Available Balance: $5,000

Margin Utilization: 50.0%

📊 Margin Analysis

Margin Level: 200%

Free Margin: $5,000

Equity: $10,000

Risk Level: Moderate

⚖️ Margin Utilization

0% 50% 80% 100%+

50.0%

Moderate Usage

⚠️ Margin trading involves significant risk. Never use more than 80% of your account as margin.

How Margin Works in Trading

What is Margin?

Margin is the amount of money required to open a leveraged position. It acts as collateral that your broker holds while your position is open.

Margin Formula

Required Margin = (Position Size × Asset Price) ÷ Leverage Ratio. Higher leverage means lower margin requirements but higher risk.

Margin Level

Margin Level = (Equity ÷ Used Margin) × 100. This shows how much margin you're using relative to your account equity.

Risk Management

Never use more than 50-80% of your account as margin. Keep free margin available for additional positions or to weather market volatility.

Margin Calculation Formula

Required Margin = (Position Size × Asset Price) ÷ Leverage Ratio

Example:

Position Size: 1,000 units
Asset Price: $50.00
Position Value: $50,000
Leverage: 10:1
Required Margin: $50,000 ÷ 10 = $5,000