Margin calculator
Margin is the part of your balance a broker sets aside to keep a leveraged position open. It is not a fee: it is released when the trade closes. Higher leverage means less margin per trade, but the same price move still hits your balance just as hard.
How it's calculated
Required margin = (Contract size × Lots × Price of the base currency in USD) ÷ Leverage
Example: 0.50 lots of EUR/USD at 1.1400 with 1:100 leverage: 50,000 × 1.14 = $57,000 of exposure, so the required margin is $570.
Questions
What is leverage?
Leverage lets you control a position larger than your deposit. At 1:100, $1,000 of margin controls a $100,000 position. Profit and loss are calculated on the full $100,000, which is why leverage magnifies both.
What happens when free margin runs out?
Free margin is your equity minus the margin already in use. If losses push equity below the broker’s margin-call level you cannot open new trades, and at the stop-out level positions are closed automatically, usually starting with the biggest loser.
Is high leverage risky?
Leverage does not change what a pip is worth, but it lets you open far bigger positions with the same account, and that is what makes losses large. Size trades by how much you are willing to lose (see the position size calculator), not by how much margin you have free.
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For education only. TradeBaazi is a trading simulator: no real money is traded, and nothing here is financial advice.