How to use the Margin Calculator
- Enter lots and contract size.
- Set the current market price.
- Use the leverage that applies to the symbol.
- Enter account equity to estimate free equity and margin level.
- Leave conversion at 1 unless base exposure must be converted into account currency.
Formula
Notional = Lots x Units per lot x Market price x Conversion
Required margin = Notional / Leverage
Margin level = Equity / Required margin x 100Example
One lot at 1.08500 with 100:1 leverage creates about $108,500 notional exposure and needs about $1,085 margin.
What to watch
- Broker symbol rules can override simple leverage math.
- Margin is not the same as maximum loss. It is collateral required to hold exposure.
- Margin level can change quickly when open losses reduce equity.
Frequently asked questions
What is margin level?+
Margin level is equity divided by used margin, shown as a percentage. Lower margin level means less buffer.
Why does higher leverage reduce required margin?+
Higher leverage lets the same notional exposure be held with less collateral. It does not reduce trade risk.
Can this predict stop-out?+
It can estimate buffer, but broker stop-out rules and open portfolio exposure should be checked directly.