Free trading calculator
Margin calculator: how much money do I need to open a trade?
Leverage lets you open a trade bigger than your balance. The margin is the deposit your broker sets aside while the trade is open. This calculator shows it, and what share of your account it uses.
Loading exchange rates…
How to use the margin calculator
- Pick your account currency and what you are trading.
- Type the trade size in lots.
- Choose the leverage your broker gives you (you see it in your account settings).
- Check the price. We fill it in from daily rates; type the live price from your platform for an exact figure.
- Optionally type your balance to see what share of it the trade uses.
Example: 0.10 lots of EUR/USD at 1:100
- 0.10 lots = 10,000 euros. At a price of 1.1000 the trade is worth $11,000.
- With 1:100 leverage the broker sets aside 1/100: $110 of margin.
- On a $500 account that ties up 22% of the balance.
Common mistakes
- Treating margin as the most you can lose. It is not: losses depend on your stop loss and can exceed the margin.
- Using all available leverage. High leverage means a small move can trigger a margin call or stop-out.
Questions
What is a margin call?
When your losses use up most of your free margin, the broker warns you or starts closing trades (stop-out). Each broker sets its own levels.
What leverage is allowed in Kenya and South Africa?
It depends on the broker and your account type. Locally licensed brokers often limit leverage for retail clients; check your broker's terms.
Is higher leverage better?
No. It lowers the margin needed, but makes it easy to open trades that are too big. Size trades by risk, not by available leverage.
More free calculators
- Position size calculator
How many lots to open so a losing trade only costs what you planned.
- Pip value calculator
What one pip is worth in your currency for any lot size.
- Profit and loss calculator
What you make or lose if price moves from A to B.
- Risk/reward calculator
Is the trade worth it? Your reward versus your risk, and the win rate you need.
- Loss recovery calculator
Why big losses are hard to win back, and what a losing streak does.
Calculators are for education and planning. Results exclude spread, commission and swap, and brokers may use different contract sizes. Check your broker's contract specification before trading. Not investment advice.