What is Margin?
Margin is the guaranteed amount your broker sets aside to open and maintain a position. It works with leverage: higher leverage lowers the initial margin for the same notional size, but does not lower risk. If price moves against you, your free margin shrinks and your margin call risk increases.
- Used Margin: Funds locked for open positions.
- Free Margin: Equity minus used margin (capacity to open new trades or absorb drawdown).
- Margin Level: (Equity / Used Margin) × 100.
How This Calculator Helps You
Example Scenario
Account currency USD, EURUSD price 1.0950, 1 lot, and 1:100 leverage.
Note: Contract size depends on the instrument. For CFDs/metals, always check your broker’s contract specifications.