Margin calculator
When trading, you are only required to put up a small amount of capital to open and maintain a new position. This capital is called the margin.
For example, if you want to buy $1000 worth of USD/EUR, you don’t need to put up the full amount to trade. You only need to put up a small percentage like $300 depending on the amount and conditions set by your broker.
Think of margin as a deposit/collateral needed to open a position.
*Scroll down to view the calculation
How to use the currency calculator:
STEP 1
Enter your base currency
1
STEP 2
Select the currency pair you wish to trade
2
STEP 3
Select your account type (Standard or Micro)
3
STEP 4
Enter your volume in Lots
4
STEP 5
Enter your Leverage amount
5
EXAMPLE:
Account Base Currency:USD |Currency Pair:EUR/USD
Account Type: Standard | Volume in Lots: 5 | Leverage: 100
Current Conversion Price (EUR/USD) –0.97
Required Margin (EUR)
Account Base Currency –5000.00
Required Margin (EUR)
Converted Currency –4857.40
Please note that the calculation above is only an example and may differ from actual calculations due to differences which may occur in the contract specifications unique to each instrument and asset.
Margin - a "good faith" assurance
Margin is often referred to as a “good faith” assurance that you can afford to hold the trade until it is closed. Margin is NOT a fee or a transaction cost of a trade.
It’s simply a portion of the remaining equity that can be set aside from your account. This is to ensure that you can cover the potential loss of trade.
