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Leverage & Margin Calculator

This margin calculator shows the deposit a leveraged position ties up, and why the full position value, not the margin, decides your profit or loss.

Prepared by the KyvoInvest editors. Updated 26 September 2026. Our research process

Margin calculator

Required margin
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Glass euro symbol and a glass dollar symbol balanced on a sleek scale

This margin calculator shows how much of your own money a leveraged currency or gold position locks up. Choose the pair, enter the price, the size in lots and the leverage, and it returns the required margin in US dollars along with the full value of the position.

The margin calculator formula

Required margin = (lots × units per lot × price of base currency in USD) ÷ leverage

The part in brackets is the position value, sometimes called the notional. Leverage of 30:1 means you deposit one-thirtieth of it, or about 3.33%. Regulators cap retail leverage in many countries: in the UK and EU it is 30:1 on major currency pairs, 20:1 on other pairs, gold and major indices, and lower on shares and crypto.

A worked example

Illustrative numbers: you want 0.5 lots of EUR/USD at 1.1000 with 30:1 leverage. The position is 50,000 euros, worth 50,000 × 1.1000 = $55,000. The required margin is $55,000 ÷ 30 ≈ $1,833.33.

What leverage does not change is exposure. Each pip on 0.5 lots is still worth $5, and a 1% move in the rate is still 1% of $55,000, or $550, which is 30% of the margin.

Margin level and close-out

Platforms track your margin level: account equity divided by the margin in use, as a percentage. Under UK and EU rules for retail clients, the provider must start closing positions when the margin level falls to 50%.

Continuing the example, suppose your account equity is $3,000 with that single position open. Close-out would begin when equity drops to 50% of $1,833.33, about $916.67. That means a loss of about $2,083.33, or roughly 417 pips at $5 a pip. With less spare equity in the account, the cushion would be much thinner.

How to use this in practice

  • Size the trade by risk first with the position size calculator, then check the margin it needs here.
  • Keep free equity well above the margin required, so normal price swings do not trigger a close-out.
  • Remember that margin requirements can rise at short notice, for example before major events or weekends.
Trading on margin can lose you money quickly, and in some jurisdictions you can lose more than your deposit. Most retail CFD accounts lose money. Read our forex guide for the context.

Reader questions

Is margin a fee?

No. Margin is a deposit set aside while the position is open and released when it closes. The costs of the trade are the spread, any commission and overnight financing.

Does higher leverage mean higher risk?

Higher leverage lets you open a bigger position with the same deposit. Risk depends on the position size you actually choose, but high leverage makes it easy to choose a size that can wipe out the account.

Sources

  • UK Financial Conduct Authority, CFD rules for retail clients
  • European Securities and Markets Authority, product intervention measures on CFDs

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