Margin Calculator

Margin Calculator

Cost Price: Selling Price:

A margin calculator is a tool used to determine the margin required for a particular trade or investment. The margin refers to the amount of money or collateral that a trader or investor must deposit to cover potential losses in a trade. It acts as a security deposit held by a broker or exchange.


To calculate the margin, you typically need the following information:Account currency: The currency in which your trading account is denominated.
Trade size: The size of the trade you want to enter, usually measured in lots or units.
Leverage: The leverage ratio provided by your broker. Leverage allows you to control a larger position with a smaller amount of capital.

The formula to calculate margin is:

Margin = (Trade Size / Leverage) * Contract Size * Price

Here's how you can use the formula step-by-step:

Determine the contract size: The contract size represents the quantity of the asset you are trading. It varies depending on the financial instrument. For example, in Forex trading, the contract size is typically 100,000 units.


Determine the price: The price is the current market price at which you want to enter the trade.


Plug in the values: Substitute the trade size, leverage, contract size, and price into the formula.


Calculate the margin: Perform the calculations according to the formula to obtain the required margin.

Keep in mind that different brokers and exchanges may have specific margin requirements and variations in their calculations. It's essential to refer to your broker's documentation or contact their support for precise margin requirements and any additional factors to consider.