What is margin in forex?
Margin is the deposit your broker sets aside to keep a leveraged position open. It is not a fee — it is collateral. The higher your leverage, the smaller the margin needed to control the same position size, but the more sensitive your account becomes to price moves. Knowing the margin in advance keeps you from over-leveraging.
How to calculate required margin
Worked example: 1 standard lot of EUR/USD (100,000 units) at a price of 1.08 with 1:100 leverage. Notional value = 100,000 × 1 × 1.08 = $108,000. Required margin = $108,000 ÷ 100 = $1,080. The calculator converts non-USD pairs to USD using live rates.
Frequently asked questions
Does higher leverage reduce my risk?
No. Higher leverage reduces the margin required, but your risk is determined by position size and stop-loss, not leverage. More leverage simply lets you open larger positions for the same deposit — which can increase risk if misused.
What is a margin call?
When your account equity falls toward the required margin, the broker issues a margin call and may close positions. Keeping margin usage low (using sensible position sizes) avoids this.
Is the price live?
Yes — the market price is auto-filled from the live feed and used to value your position. You can override it to model a specific entry.