Short answer
Margin = (lots × contract size × price in USD) ÷ leverage. One standard lot of EURUSD at 1.1000 is worth USD 110,000, so at 1:500 it needs USD 220 of margin. When USD is the first currency, as in USDJPY, the price drops out: one lot at 1:500 needs USD 200.
The same $100 of margin at different leverage
- 1:50 −$50
- 1:100 −$100
- 1:200 −$200 more than your whole margin
- 1:500 −$500 more than your whole margin
- 1:1000 −$1,000 more than your whole margin
On this page
The formula by instrument
| Instrument type | Examples | Margin in USD |
|---|---|---|
| USD is the second currency | EURUSD, GBPUSD, AUDUSD, NZDUSD | lots × 100,000 × price ÷ leverage |
| USD is the first currency | USDJPY, USDCHF, USDCAD | lots × 100,000 ÷ leverage |
| Gold | XAUUSD | lots × 100 × price ÷ leverage |
When USD comes first, the position is already counted in dollars, so the price isn’t needed. For the other two rows the calculator asks for the current price; copy it from your platform. The gold row assumes the usual contract size of 100 ounces per lot; check yours in the symbol specification.
Worked examples
EURUSD, 0.10 lots, 1:200, price 1.1000 (example price). 0.10 × 100,000 × 1.1000 ÷ 200 = USD 55
USDJPY, 0.50 lots, 1:1000. 0.50 × 100,000 ÷ 1,000 = USD 50
XAUUSD, 0.05 lots, 1:500, price 3,000.00 (example price). 0.05 × 100 × 3,000 ÷ 500 = USD 30
Leverage presets
The calculator offers 1:50, 1:100, 1:200, 1:400, 1:500, 1:1000 and 1:2000. What you can actually use depends on your broker, your account type, the instrument and sometimes the rules where the broker’s company is regulated.
Higher leverage means less margin per position. It doesn’t reduce the loss per pip. With USD 200 of margin at 1:500 you can hold a position worth USD 100,000, and a 1% move against it costs USD 1,000, five times the margin. That is how small accounts get emptied. Our guide to leverage and margin walks through margin level, margin calls and stop outs before you choose a setting.
Why your platform may ask for more margin
Treat the calculator’s result as a minimum. Brokers can apply a higher, fixed margin requirement on some instruments and at certain times, for example around major news releases and ahead of weekends, whatever leverage you have set. Before you open a position, check the margin your platform shows in the order window, and keep enough free margin for the market to move against you.
How to read the result
- Margin required is the money set aside from your balance while the position is open. It isn’t a fee; it goes back to free margin when you close the position.
- Free margin is what’s left for new positions and for absorbing losses. If losses use it up far enough, your platform can close positions automatically.
On Exness accounts
Exness, our recommended broker, sets maximum leverage by account equity. From Exness’s own pages:
| Account equity | Maximum leverage |
|---|---|
| USD 4,999.99 or less | “Unlimited”, once you have at least 10 closed positions totalling 5 lots |
| USD 5,000 to 29,999 | 1:2000 |
| USD 30,000 to 99,999 | 1:1000 |
| USD 100,000 or more | 1:500 |
“Unlimited” is not the default, and Exness can also apply higher, fixed margin requirements on some instruments and at certain times. Use the margin shown in your order window as the final figure.
For the position size that fits your stop loss, use the lot size calculator or the gold lot size calculator. For pip values, see the pip value calculator. Try different leverage settings on a demo account to see how margin and free margin change.
Common questions
How is margin calculated in forex?
Multiply the lot size by the contract size (100,000 units for currency pairs, usually 100 ounces for gold) and by the price in US dollars, then divide by your leverage. For pairs that start with USD, leave the price out.
Does higher leverage mean bigger losses?
Leverage itself doesn't change the loss per pip; position size does. But higher leverage lets you open bigger positions with the same money, and that is where large losses come from.
Why is my margin higher than the calculator shows?
Brokers can apply a higher, fixed margin requirement on some instruments and at certain times, such as around major news or before weekends, and the price may have moved since you entered it. Use the figure your platform shows.
What happens when I run out of free margin?
You can't open new positions, and if losses keep reducing your equity, the broker's margin call and stop-out levels come into play: the platform can close your positions automatically. Each broker sets its own levels.