Required Margin
Calculator
How to use the calculator
Step 1
Select your trading instrument
Step 2
Choose your account base currency
Step 3
Specify your trade size accurately
Step 4
Set your desired leverage
Step 5
See the required margin.
The calculators are used for illustrative purposes only and use default account settings, including standard margin rates. It does not consider all variables such as dynamic margin rates or effective leverage. Calculations may vary based on different server setups or client specific account settings.
What is the required margin?
Required margin is the amount of capital a trader must deposit to open and maintain a leveraged position in Forex or CFD (Contracts for Difference) trading. It is usually expressed as a percentage of the total trade size.
What is a lot in trading?
In forex trading, a standard lot consists of 100,000 units of currency. There are smaller lot sizes available: a mini lot (10,000 units), a micro lot (1,000 units), and a nano lot (100 units).
How much money do you need to start trading forex?
How does the formula work?
Number of lots
Notional value per lot
Price of product
Leverage Factor
Account currency exchange rate
=
Only applicable if the account currency differs from the product’s denominated currency.
Leverage factor formula
The leverage factor is a numerical value that determines the amount of exposure a trader has relative to their required margin. It is calculated differently depending on whether the instrument uses account leverage or a fixed leverage model.
The Margin % and Initial Margin Rate % can be found in the Product Schedule.
Account Leverage
Leverage
=100
Margin Requirements %
In this model, leverage is set at the account level, meaning that the same leverage applies to all tradable instruments unless otherwise specified.
In this formula, if the margin requirement is set at 3.33%, the leverage factor will be 30:1.
Fixed Leverage
Leverage Factor
=1
Initial Margin Rate %
In this model, leverage varies by instrument rather than being applied universally across the account.
If the initial margin requirement is set at 5%, that will result in a leverage factor of 20:1
Example
Trading instrument
EURAUD
Account base currency
USD
Trade size
0.1 lots
Leverage
30:1
National value/lot
€100,000
EURAUD rate
1.7204
AUDUSD rate
0.6357
The above exchange rate is used for illustrative purposes.
To open the trade, you would require a minimum margin of 364.47 USD in your account. Please note that exchange rates can fluctuate, and the actual required margin may vary depending on the rates at the exact time of the trade.
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