Margin Calculator
Calculate required margin, margin level, and liquidation prices for leveraged forex trades.
margin.hint.entryPriceAffects
Required Margin
$0.00Margin Level
0.00%Free Margin
$8,915.00Effective Leverage
10.9:1Liquidation Price (Long)
0.9877Liquidation Price (Short)
1.1823Margin Level
Liquidation Price (Long) & Liquidation Price (Short)
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Why Margin Management Determines Your Survival
Leverage amplifies both gains and losses. Many traders don't lose because their direction is wrong — they lose because they don't have enough margin to survive the volatility until price moves in their favor.
Margin is not just a number. It's the distance between your position and forced liquidation. When margin level drops below 100%, your broker can close your position at any time, often at the worst possible price.
Margin Level at Different Leverages
Higher leverage dramatically reduces your margin buffer
Leverage Comparison
Common Mistakes
#1: Thinking higher leverage = higher profits
What traders do
Maxing out leverage because you want to multiply returns
The consequence
Leverage amplifies exposure, not probability. A 500:1 position moves 5x faster against you than 100:1.
What to do instead
Use leverage conservatively. Higher leverage means smaller margin buffer, not higher win rate.
#2: Watching only free margin before opening trades
What traders do
Checking available margin but ignoring how floating losses will reduce it
The consequence
Floating losses eat free margin quickly. A few pips against you can trigger a margin call.
What to do instead
Always factor in potential drawdown. Leave at least 200% margin buffer for open positions.
#3: Relying on margin instead of stop losses
What traders do
Opening large positions without stop losses, assuming margin will hold
The consequence
When margin runs out, the broker liquidates at market price — often worse than your stop loss would have been.
What to do instead
Always use stop losses. Margin should be a safety net, not your risk management strategy.
Margin Calculation Formula
Calculate required margin
Required Margin = Position Size × Contract Size / LeverageCalculate margin level
Margin Level = (Equity / Required Margin) × 100%Example calculation
Example: $10,000 / $9,259 × 100% = 108% (Warning zone)Example calculation