Leverage & Margin Calculator

This margin calculator shows how much of your account a broker will set aside to open a leveraged position. Choose the pair, enter the price, your size in lots and the leverage ratio, and it returns the position's full value and the margin required.

The formula

Leverage caps for retail CFD clients in the UK and EU are 30:1 on major currency pairs, 20:1 on other pairs and gold, 10:1 on other commodities, 5:1 on shares and 2:1 on crypto. Put differently, margin must be at least 3.33%, 5%, 10%, 20% and 50% of the position value. US retail forex allows up to 50:1 on majors.

Worked examples

Illustrative prices only.

1. EUR/USD at 1.0800, 0.5 lots, 30:1. Position value: 0.5 × 100,000 × 1.08 = $54,000. Margin: $54,000 ÷ 30 = $1,800.
2. Gold at $2,300, 0.1 lots (10 oz), 20:1. Position value: 10 × $2,300 = $23,000. Margin: $23,000 ÷ 20 = $1,150.

In the first example, a 1% move against you on $54,000 costs $540, which is 30% of the margin. That is the effect leverage has: the market moved one percent, your deposit moved thirty.

How to read the result

Margin is not a fee; it is part of your balance held as security while the position is open. What matters is how much free equity is left to absorb losses. Brokers track your margin level (equity divided by used margin, as a percentage). Under UK and EU retail rules, positions are closed automatically when it falls to 50%, often at the worst moment.

A practical rule of thumb: if the required margin is a large slice of your account, the position is too big, however confident you feel. Size positions with the position size calculator first, then use this page to check the margin. For the rules behind the caps, see how to choose a broker and how the main markets compare.