Explore more calculators
Optional (advanced)
Required Margin: —
Margin Used: —
Free Balance Remaining: —
Maximum Position Value: —
Insight: —
Margin is the amount of capital required to open and maintain a leveraged trading position. Instead of paying the full value of a trade, you only need to deposit a fraction of it, while the rest is effectively borrowed from the broker or exchange.
This margin calculator helps you instantly determine required margin, position value, and free margin based on your leverage and trade size. It is essential for traders who want to control risk and avoid liquidation.
Leverage allows you to control a larger position with a smaller amount of capital. For example, with 10x leverage, a $1,000 balance can control a $10,000 position.
However, higher leverage increases both potential profits and potential losses. If your margin falls below the required level, your position may be liquidated.
Required Margin = Position Size / Leverage
This formula shows how much capital you need to open a trade.
Position Size = Margin × Leverage
Understanding these formulas helps you plan trades more effectively and avoid overexposure.
Free margin is the amount of capital available to open new positions or absorb losses.
Free Margin = Account Balance − Used Margin
Low free margin increases liquidation risk, especially in volatile markets like crypto and forex.
Without understanding margin, traders often take excessive risk without realizing it.
Margin is the amount of money required to open a leveraged position. It acts as collateral while you control a larger trade size using leverage.
Higher leverage reduces the margin required to open a trade. For example, with 20x leverage, you only need 5% of the total position value as margin. However, higher leverage also increases risk.
Free margin is the available balance that is not being used for open positions. It acts as a buffer against losses and allows you to open new trades.
If your margin drops below the required level, your position may be liquidated automatically. This is called a margin call or forced liquidation.
Not necessarily. While higher leverage increases potential profits, it also increases losses and liquidation risk. Most professional traders use moderate leverage.
You can reduce risk by using lower leverage, setting stop losses, managing position size, and keeping sufficient free margin in your account.
Disclaimer: The calculators on this website are provided for informational and educational purposes only. All results are estimates based on the values entered and do not constitute financial, investment, or trading advice. Always conduct your own research before making financial decisions.