How to calculate margin?

Select your currency pair, account currency (deposit base currency) and margin (leverage) ratio, input your trade size (in units, 1 lot= 100,000 units) and click calculate. The calculator will use the current real-time prices for exact values.

Why is margin important?

Opening a trade with too much margin can quickly lead to a margin call. Opening a trade with insufficient margin could lead to a profitable trade which has little impact on your trading account. Therefore, the margin required should be somewhere in between and according to your risk appetite.

What is a margin call in Forex?

When you’re trading forex with leverage, this means the broker gives you additional margin to trade with, according to the selected leverage. As this increases your profit, the same goes with losses. In order to prevent your account from losing more than you’ve deposited, a broker has an automatic process to close all open positions once the margin level reaches a certain percentage (usually 80%) – this is called a margin call.