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Forex Margin Calculator
Enter the position size, the price and your leverage. The calculator shows the margin required, how much of your balance it ties up and when a forced close-out would happen.
By FirstPip editorial team · Updated 2026-10-16 · Educational content · No broker owns this site
Quick answer. Margin equals the position's full value divided by the leverage. One standard lot of EUR/USD at 1.1000 is worth $110,000, so at 30:1 leverage it needs $3,666.67 of margin, or 3.33% of the position. Profit and loss are still calculated on the full $110,000.
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Results are in your account currency and use the figures you type. Brokers can set higher margin than the legal minimum, and margin changes as the price moves. This is arithmetic, not advice on whether to trade.
How is forex margin calculated?
Margin is the deposit a broker sets aside from your balance while a leveraged position is open. It is worked out from the position's full value and the leverage you are allowed.
Margin = lots × units per lot × value of the base currency ÷ leverage
Worked example. One standard lot of EUR/USD is 100,000 euros. At a price of 1.1000 that position is worth $110,000. At 30:1 leverage the broker needs $110,000 ÷ 30 = $3,666.67 as margin, which is 3.33% of the position. If the account holds $10,000, that one trade uses about 37% of it.
If your account currency is the base currency, as with USD/JPY on a US dollar account, each unit is already worth 1 in your currency: 0.10 lots is 10,000 dollars of exposure and needs $333.33 at 30:1.
What are the leverage limits for retail traders?
| Region | Major currency pairs | Other currency pairs | Close-out and balance rules |
|---|---|---|---|
| European Union (ESMA) | 30:1 (3.33% margin) | 20:1 non-major pairs | Position closed at 50% of required margin; negative balance protection |
| United Kingdom (FCA, COBS 22.5) | 30:1 (3.33% of exposure) | 20:1 minor pairs (5%) | Closed when net equity falls below 50% of required margin; losses limited to funds in the account |
| Australia (ASIC) | 30:1 | 20:1 minor pairs | 50% close-out; negative balance protection |
| United States (NFA) | 50:1 (2% deposit) on ten named major currencies | 20:1 (5% deposit) on all others | No negative balance protection rule in NFA Section 12 |
These are the maximums for retail clients. A broker may ask for more margin than this, and brokers regulated elsewhere may offer far higher leverage with none of these protections. Our leverage limits by region sheet has the detail and sources.
Is margin the same as risk?
No, and this is the most common misunderstanding about leverage. Margin decides how little cash it takes to open a position. Profit and loss are calculated on the whole position. In the example above, a 1% move in EUR/USD changes the trade's value by about $1,100, whatever the leverage. Higher leverage only means the broker holds back less of your money while you take that same risk.
So control risk with the position size and the stop, not with the leverage setting. Size each trade with the position size calculator and read why the ratio is not your real risk in our lesson on leverage risk.
What happens when margin runs low?
As a trade moves against you, your equity falls. Brokers warn you with a margin call and, past a set level, close positions for you. In the EU, UK and Australia that level is set by rule: a retail position must be closed when equity falls to 50% of the margin it requires. With $10,000 in the account and $3,666.67 of margin on one position, that point comes after a loss of about $8,166.67. A well-placed stop should close the trade long before then.
Frequently asked questions
How much margin do I need for 1 lot of EUR/USD?
One standard lot is 100,000 euros. Multiply by the EUR/USD price to get its value in dollars, then divide by your leverage. At 1.1000 and 30:1 that is $110,000 ÷ 30 = $3,666.67. At 0.01 lots (a micro lot) it is one hundredth of that, about $36.67.
Does higher leverage mean more risk?
Not by itself. Leverage changes how much cash the broker holds back to open the trade; the profit or loss on each pip depends on the position size. What higher leverage does is let you open much larger positions with the same balance, which is how it leads to bigger losses.
What is the maximum leverage for retail forex traders?
For major currency pairs it is 30:1 in the EU, the UK and Australia, and 50:1 in the US on ten named major currencies. Other currency pairs are capped at 20:1 in all four. Brokers outside these regions may offer more, without the same protections.
What is a margin close-out?
It is when the broker closes your positions because your equity has fallen too far below the margin they need. In the EU, UK and Australia a retail position must be closed when equity falls to 50% of the required margin. In those regions negative balance protection also means you cannot lose more than the money in the account.
Keep going
Sources
- ESMA — Agrees to prohibit binary options and restrict CFDs: leverage limits 30:1 to 2:1, 50% margin close-out, negative balance protection (27 March 2018)
- FCA Handbook COBS 22.5 — restrictions on CFDs for retail clients: margin 3.33% major FX, 5% minor FX, 50% net-equity close-out, loss limited to account funds
- ASIC 20-254MR — CFD product intervention order (leverage ratio limits, close-out, negative balance protection)
- NFA Financial Requirements Section 12 — security deposits for forex transactions (2% on ten major currencies, 5% on others)
- FirstPip knowledge base — brokers/retail-leverage-and-cfd-protections, concepts/leverage-and-margin (S014, S015, S017, S021)