Calculate The Required Margin For Your Position

### Available for Forex, Crypto and Shares Markets

## Forex Margin Calculator

Margin is the amount the trader deposits to the broker for the opening of the leveraged position. While the position is still open, the margin is blocked by the broker and the trader cannot use it. However, once the position is closed, it is released and is available to the trader.Margin (or Leverage) trading is the use of borrowed money in order to open larger positions in the financial markets. The leverage ratio provided by different brokers can vary, depending on the broker and the experience of the trader.

A 10:1 leverage ratio means that for every $1 (or any other currency) in his account, the trader can open a position worth $10. So, if that trader decides to risk $5 (that would be the margin), he opens a position for $50 on the market. In other words, with his $5 the trader opens a position 10 times larger. In still other words, the $50 position that the trader opens, has a 10% margin (his $5).

Let's check out the following example.

First, we need to input the parameters of the Forex position:

✓ Account Base Currency – USD (your account currency);

✓ Currency Pair – AUD/CAD (the Forex pair you want to trade);

✓ Exchange Rate AUD/USD – 0.77300 (the calculator will need you to input an additional exchange rate, depending on your Account Base Currency and the Currency Pair. If the account currency and the base (first) currency in the pair are the same, just ignore the field or type in “1”);

✓ Account Type – Standard Lot – 100 000 Units (the contract size, or the size of the lots you trade with your account);

✓ Position Volume (Lots) – 2 (the number of lots that you plan to trade);

✓ Leverage – 1 : 30 (the leverage of your account).

Calculations:

The required margin can be calculated through this formula:

Required Margin = Position Volume * Units per Lot (Account Type) * Exchange Rate) / Leverage

In our example:

(2 * 100 000 * 0.77300)/30 = 5 153.33 USD

The margin, required for the opening of this position, would be 5 153.33 USD

## Crypto Margin Calculator

The Margin Crypto calculator computes the required margin for your position in the Crypto market, in the currency of your account.

For calculating the margin for a Crypto position, we first need these parameters:

✓ Account Base Currency – USD (your account currency);

✓ Cryptocurrency Units per 1 Lot – 1 (the size of one Lot may differ with each cryptocurrency or broker);

✓ Crypto/USD Exchange Rate – 6 000.00 (the calculator will need you to input the exchange rate between the Cryptocurrency and your Account Base Currency);

✓ Position Volume (Lots) – 2 (the number of lots that you plan to trade);

✓ Leverage – 1 : 10 (the leverage of your account).

Calculations:

The required margin can be calculated through this formula:

Required Margin = (Position Volume * Cryptocurrency Units per Lot * Exchange Rate) / Leverage

In our example:

(2 * 1 * 6 000) / 10 = 1 200 USD

So, the margin, required for the opening of this position, is 1 200 USD.

## Shares Margin Calculator

This calculator computes the size of the required margin for a position in the stock market.

If you need to calculate the required margin for your shares or index position, you have to provide the following parameters to the calculator:

✓ Account Base Currency – GBP (your account currency);

✓ Share (Index) Price / Currency – 131.00 / USD (the price per share and the currency, in which it is quoted);

✓ Exchange Rate USD/GBP – 0.71310 (the calculator will need you to input the exchange rate between the currency of the share and your Account Base Currency);

✓ Position Volume (Shares) – 15 (the number of shares that you plan to trade);

✓ Leverage – 1 : 20 (the leverage for the position).

Calculation:

The required margin can be calculated through this formula:

Required Margin = (Position Volume * Share Price * Exchange Rate) / Leverage

In our example:

(15 * 131 * 0.71310) / 20 = 70.06 GBP

Or, the margin, required for the opening of this position, is 70.06 GBP.