Margin & Leverage Calculator
See your real exposure before you click buy.
Leverage looks like a feature. It's actually a warning. This tool shows you the required margin, the free margin left in your account, and your real exposure multiple after the trade opens — so you can catch over-leveraging before it catches you.
This is the money your broker locks up while the trade is open. If the trade closes at breakeven, this money comes back to you.
Your exposure is more than 20x your account balance. A 5% move against you would wipe out your account. The desk caps exposure at 5-10x for intraday and 2-3x for swings. Size down.
What it is
Margin is the portion of your account your broker locks up as collateral while a trade is open. Leverage is the multiplier that determines how large a position you can control with a given margin. This calculator takes position size, leverage, pair price, and account balance, then returns required margin, free margin, notional exposure, and margin level. These are the numbers your broker uses to decide if they'll let the trade run or force a liquidation.
When to use it
Before opening any position larger than 1% of your account, and any time you're considering using more than 1:50 leverage. Also useful when sizing multiple correlated positions — the total margin across trades can add up faster than you expect.
The formula
Notional exposure = Lots × Contract size × Pair price Required margin = Notional exposure ÷ Leverage Free margin = Account balance − Required margin Margin level % = (Account balance ÷ Required margin) × 100 Exposure multiple = Notional exposure ÷ Account balance Example: 1 lot EUR/USD at 1.095, 1:100 leverage, $5,000 account Notional: 1 × 100,000 × 1.095 = $109,500 Required margin: $109,500 ÷ 100 = $1,095 Free margin: $5,000 − $1,095 = $3,905 Exposure: 21.9x (warning territory)
How to use it
- 1. Enter your position size in lots
This is the volume number you'd put on your broker. 0.1 = mini lot, 1.0 = standard lot. Use decimals for fractional sizing (0.37 lots is fine).
- 2. Pick your broker's leverage
ESMA-regulated brokers cap retail at 1:30 for majors. US brokers cap at 1:50. Offshore brokers may offer up to 1:1000 — but just because it's offered doesn't mean you should use it.
- 3. Enter the current pair price
Pull this from your broker's live quote. For a buy order, use the ask price. For a sell order, use the bid. This determines notional exposure.
- 4. Enter your contract size
Standard is 100,000 units per lot for forex. Gold typically uses 100 oz. Indices and crypto vary by broker — check your broker's contract specs.
- 5. Read the results carefully
Required margin tells you the cash lockup. Exposure multiple tells you the real risk — if it's above 20x, you're one bad news event away from a wipeout.
Common mistakes
- ✗Treating high leverage as a free upgrade. 1:500 leverage does not make you more profitable. It just lets you blow up faster if you size wrong.
- ✗Confusing leverage with position size. Leverage is the maximum you could take. Position size is what you should take. Never size up just because you have leverage available.
- ✗Opening multiple correlated positions without checking combined margin. Being long EUR/USD, GBP/USD, and AUD/USD at 'normal' size each can still put you at 60x combined exposure if the dollar moves.
- ✗Ignoring margin calls until they happen. If your margin level drops below 100%, your broker will force-close positions. Watch the number.