Forex margin calculator for pairs and gold

Find out how much margin a position needs at your leverage, and why margin is not the same as risk. No sign-up.

Pick the instrument, enter the lots, price and your account leverage. It shows the margin the position needs and the full position value.

How the calculation works

Position value = lots x contract size x price. Margin = position value / leverage. One standard lot of EURUSD at 1.0850 is 100,000 x 1.0850 = $108,500 of position value, so at 1:100 leverage the margin is $1,085. For a USD-base pair such as USDJPY, the position value in dollars is simply lots x 100,000.

Why margin is not the same as risk

Margin is the amount your broker holds to keep the position open. It is not what you can lose. Your risk is set by your stop loss and lot size; use the position size calculator for that. High leverage lets you open large positions with little margin, which is exactly why a journal that records your size and result for every trade matters.

Limits

• Brokers differ on margin rules, leverage tiers and margin calls. Check your broker's specification.
• For crosses and non-USD accounts the base currency must be converted into your account currency.
• This tool ignores floating profit and loss, which changes your free margin.

This calculator is for education. It is not trading or investment advice.

Margin at different leverage levels (hypothetical prices)

The table shows the margin for one standard lot at a hypothetical EURUSD price of 1.0850 (position value $108,500) and for one lot of gold at a hypothetical $2,400 per ounce (100 ounces, position value $240,000). Your broker's leverage options and margin rules may differ.

Higher leverage means less margin per position, which is why it feels cheaper to trade larger. Nothing about the risk changes: a 20-pip stop on one EURUSD lot still risks about $200 whether the margin is $3,617 or $217.

Margin, free margin and margin level in MT5

MetaTrader 5 shows these figures in the Toolbox under the Trade tab. Equity is your balance plus floating profit or loss. Margin is the total your open positions hold. Free margin is equity minus margin and is what is left to open new positions. Margin level is equity divided by margin, as a percentage. When margin level falls to your broker's margin-call or stop-out level, the broker may warn you or begin closing positions, and those levels are set by the broker.

Margin is not risk

It is easy to confuse the two. Suppose you have a $2,000 account and open 0.5 lots of EURUSD at 1:100 leverage. The margin is $542.50, which is 27% of the account, and it looks like a large commitment. But if your stop is 15 pips away, the risk is 0.5 x $10 x 15 = $75, or 3.75% of the account. The margin tells you how much room you have left; the stop and the lot size tell you what you can lose. Use the position size calculator to choose lots from your risk, then use this page to check the margin that results.

How over-leverage shows up in a journal

Over-leveraging rarely feels like a mistake at the time. It shows up in the trade log as lot sizes that grow after wins, several positions open on correlated pairs, and stops placed far from entry to avoid being stopped out. A journal that records lot size and result per trade lets you see these patterns. Useful checks:

• Largest lot size by month. If the maximum jumps after a good run, note it and ask whether it was in the plan.
• Total open volume. Count lots across all open trades, not just one. Three 0.3-lot trades on pairs that all move with the dollar behave like a single 0.9-lot trade.
• Result as a percentage of equity. Compare each loss with the account size at the time, not with a fixed amount.
• Trades taken near a margin warning. These deserve a note about why you were that close.

Cross pairs and non-USD accounts

The calculator assumes the base currency is USD or is quoted in USD. For a pair such as EURGBP on a USD account, margin is calculated in euros (the base currency) and converted to dollars at the current EURUSD price. For a USD-base pair like USDJPY, the position value in dollars is simply the number of lots times 100,000. The calculator's USD-base option covers that case, while crosses and non-USD accounts need an extra conversion. Your broker's contract specification in MT5 (right-click the symbol in Market Watch and choose Specification) shows the exact contract size, the margin currency and any margin rate that differs from the account-wide leverage.

Limits

• Some brokers apply tiered leverage that falls as your total position grows, or different leverage for gold, indices and crypto CFDs.
• Hedged positions may be netted for margin by some brokers and not others.
• The figure ignores floating profit and loss, which changes free margin all the time.

Margin is only half of the picture. MT5 margin level explained shows how equity and margin combine into the margin call and stop-out figures.

For gold specifically, with a table by lot size and leverage, use the XAUUSD margin calculator.

Frequently asked questions

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