MMarginal
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Margin Calculator

Find out how much of your account leverage actually reserves before you open a position.

Notional value
$108,500
Margin required
$2,170

Margin is the amount of your account a broker locks up as collateral when you open a leveraged position — it's not money you spend, but money you can't use elsewhere until the trade closes. Understanding this number matters because it determines how many positions you can hold at once and how much room you have before a margin call.

The calculation is straightforward: notional value (trade size × price) divided by leverage. A $100,000 position at 50:1 leverage requires $2,000 in margin; the same position at 10:1 leverage requires $10,000. Leverage doesn't change the size of the position or its exposure to price movement — it only changes how much of your own capital is tied up as collateral.

This is a different number from risk. A trade might require very little margin while still carrying a large potential loss if it moves against you without a stop loss — margin and risk management are related but separate concerns, and conflating them is a common way traders over-leverage accounts.

FAQ

What is margin in trading?
Margin is the portion of your account balance a broker sets aside as collateral to open a leveraged position. It isn't a fee — it's held as collateral and released when the position closes.
How does leverage affect margin?
Higher leverage reduces the margin required for the same position size. 50:1 leverage requires 2% of the notional value as margin, while 10:1 leverage requires 10% — the trade-off is that higher leverage also magnifies losses relative to your account.
What happens if I don't have enough margin?
If available margin falls too low relative to open positions — usually due to losses — brokers issue a margin call or automatically close positions to prevent the account from going negative. Margin requirements should always be checked before entering a trade, not after.