How is required margin calculated?

Required margin = position notional ÷ leverage. A $110,000 position at 1:100 leverage requires $1,100 of margin.

What does margin level mean?

Margin level = equity ÷ used margin × 100%. Brokers typically issue a margin call when it falls below a set threshold, and liquidate positions at the stop-out level.

How is the stop-out price estimated?

The stop-out price is where equity plus unrealized profit/loss equals the maintenance margin requirement. For longs it is below entry; for shorts it is above entry. Actual broker rules vary.

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Margin Calculator

Calculate required margin, free margin, margin level and the stop-out price.

Inputs

Account equity

Method

Price Position size Leverage (1:x) Maintenance margin (%)

Direction

Results

Required margin

1,100

Account equity: 10,000

Free margin

8,900

Margin level

909.09%

Stop-out price

1.05263

Maintenance margin (%)

5,500

Price at which equity equals the maintenance margin requirement.

Margin is healthy

Formula

Required margin = notional ÷ leverage; margin level = equity ÷ used margin × 100%

Worked example

Equity $10,000, EUR/USD at 1.1000, 1 lot (notional $110,000), leverage 1:100, maintenance 5%: margin $1,100, level ~909%, stop-out ~1.0526.

Calculation results are for educational purposes only and do not constitute investment advice. Always do your own research before trading.

Inputs

Results

Formula

Worked example

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