This margin calculator is built for beginners who see high leverage figures and need a concrete cash number before opening a CFD. It does not replace your broker’s margin tables.
- Leverage multiplies exposure — margin is collateral, not a fee you pay once.
- Beginners should size from cash risk first, not from maximum advertised leverage.
- Free margin falling toward zero is a margin-call warning path, not a strategy signal.
What is required margin in forex?
Required margin is the amount of equity a broker sets aside as collateral for a leveraged position. It is not a trading fee. When the trade closes, unused free margin is no longer reserved for that position, but you still pay spread, commission and any overnight financing separately.
How to use this margin calculator
Pick a pair, enter lot size, leverage available on your entity (not the marketing maximum for a different entity) and a realistic price. Optionally add account equity to see free margin after the position.
Example for beginners
Example (illustrative): 0.10 lots EUR/USD at 1.1000 with 1:100 leverage. Contract size 100,000 → notional ≈ $11,000 → required margin ≈ $110. Your exact number depends on the contract specification.
Why beginners misread leverage
A 1:500 max leverage label does not mean you should use 1:500. Risk should stay a small percentage of equity per trade. High leverage mainly lets a stop be hit with less cash reserved as margin — losses can still exhaust the account.