A 1.00 lot position at 1.1000 carries 110,000.00 of exposure and commits 3,666.67 of your capital at 1:30 leverage.
This content is for educational purposes only and does not constitute financial advice. This tool provides estimates and should not be your sole basis for trading decisions. Actual margin requirements are set by your broker and may vary by instrument. Margin calls occur when account equity falls below your broker's maintenance margin level.
How This Calculator Works
Notional value = Trade size × Instrument price
Required margin = Notional value ÷ Leverage
For example, opening a position worth €30,000 in notional value at 1:30 leverage requires €1,000 in margin — the amount of your account capital that gets committed to hold that position open. As covered in our What Is Trading? guide, this is exactly why leverage magnifies both gains and losses relative to that smaller committed amount.
Why Margin Matters Beyond the Initial Trade
Required margin isn't just about opening the position — it also affects how much room your account has to absorb unfavorable price movement before a margin call or automatic position closure occurs. Committing a large share of your account to margin on a single trade leaves less buffer for normal price fluctuation, even with a reasonable stop loss in place. This is one of the checks covered in our pre-trade checklist.
Frequently Asked Questions
Is required margin the same as the amount I can lose?
No — margin is the capital committed to hold the position open, not your maximum possible loss. Your actual loss depends on where your stop loss is set and how far the price moves, which can, in some cases, exceed the initial margin without proper risk management.
What happens if my account balance falls below the required margin?
This typically triggers a margin call or an automatic closure of some or all open positions by the broker, to prevent the account from going into a negative balance. Exact rules vary by broker and regulation — check your specific provider's policy.
Does higher leverage always mean higher risk?
Higher leverage reduces the margin required for a given position size, which allows opening larger positions relative to your account — this increases how much a given price move affects your account in percentage terms, which is why leverage is closely tied to risk.