Margin
Margin & leverage
How much capital a leveraged trade locks up
Enter your balance, the position value and the leverage your broker offers to see required margin, free margin, effective leverage and how far price can move before a margin call.
Inputs
Your account
Results
Margin breakdown
Required margin$1,000
Free margin$4,000
Margin level500%
Effective leveragePosition value vs your equity4x
Move to margin callAdverse price move your equity can absorb22.5%
How it works
The maths
Required margin is the position value divided by leverage. Everything else follows from how much equity remains once that margin is set aside.
required margin = position value ÷ leverage free margin = balance − required margin margin level = balance ÷ required margin move to call = (balance − maintenance) ÷ position value
- Broker maintenance rules vary — check yours before relying on the cushion figure.
- Swap and financing charges reduce equity over time on held positions.
FAQ
Margin — frequently asked questions
Required margin is the portion of your own capital a broker locks up to open a leveraged position. At 1:20 leverage a $10,000 position needs $500 of margin; the rest is borrowed exposure.
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Learn the concept
What is leverage?
Leverage lets you control a larger position than your deposit. Learn how leverage ratios work, what margin is, and why leverage cuts both ways.
Educational tool. Not financial advice. More tools