How do I calculate the required margin?

Here is how to calculate the required margin

Margin = Base Currency Volume / Leverage

Example 1:

Account Currency: USD
Currency Pair: USDCAD
Base Currency: USD
Volume = 1.00 lot (100,000 units of base currency)
Leverage = 1:500

Margin = (100,000 * 1) / 500 = 200.00 USD

Example 2:

Account Currency: USD

Currency Pair: EURUSD

Base Currency: EUR

Volume 0.10 lot (10,000 units of base currency)

Leverage= 1:400

Spot rate EUR to USD = 1.1400

Margin = (10,000 * 1.1400) / 400 = 28.5 USD

Example 3:

Account Currency: USD

Currency Pair: GBPCHF

Base Currency: GBP

Volume: 0.20 lot (20,000 units of base currency)

Leverage: 1:100

Spot rate GBP to USD = 1.3200

Margin = (20,000 * 1.3200) / 100 = 264.00 USD

If you have any questions on how to calculate the required margin please let us know. You can find more answers to common questions in our Forex FAQs.

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