LyvexTrade is a learning site only. We are not a broker or exchange and never open accounts or take money. Disclaimer
Menu

Leverage & Margin Calculator

This margin calculator shows how much of your money a leveraged position ties up, and what that means for the losses it can absorb.

Written and checked by the LyvexTrade editors. Updated 26 September 2026. Our research process

Margin calculator

Required margin
–
Glass euro symbol and a glass dollar symbol balanced on a sleek scale

A margin calculator tells you the deposit a provider holds while your position is open. Choose the pair, the size in lots and the leverage; the tool converts the position into US dollars and divides by the leverage.

The formula

Position value (USD) = lots × units per lot × price of the base currency in USD
Required margin = position value ÷ leverage
Margin level = equity ÷ used margin × 100%

Worked examples

Illustrative prices.

  • GBP/USD at 1.3400, 0.5 lots, 30:1. Position value = 50,000 × 1.3400 = $67,000. Margin = 67,000 ÷ 30 = $2,233.33.
  • Gold at $2,500, 1 lot, 20:1. Position value = 100 oz × $2,500 = $250,000. Margin = 250,000 ÷ 20 = $12,500.

What margin level means

Suppose the GBP/USD trade above is the only one in an account with $3,000 of equity. Margin level = 3,000 ÷ 2,233.33 × 100% ≈ 134%. UK and EU rules require providers to start closing a retail client's positions when margin level reaches 50%, which here means equity of about $1,116.67. At $5 a pip on 0.5 lots, that is a loss of about $1,883, or roughly 377 pips. A move of that size is uncommon in a day, but not impossible over weeks.

Reading the margin calculator result

Required margin is not the most you can lose. It is the amount set aside. Your actual profit or loss depends on the full position value, which is why higher leverage feels cheaper but is not safer. If the result is a large share of your balance, the position is too big for the account.

Retail leverage caps in the UK and EU are 30:1 for major currency pairs, 20:1 for non-major pairs, gold and major indices, 10:1 for other commodities, 5:1 for shares and 2:1 for crypto. US retail forex is capped at 50:1 on majors and 20:1 on others. Size the trade first with the position size calculator, then use this tool to check the margin.

Leveraged trading is high risk. A small adverse move can close your position automatically and lose most of the margin. Negative balance protection applies to retail CFD clients in the UK and EU, but not everywhere.

Sources

  • UK Financial Conduct Authority, CFD rules for retail clients
  • European Securities and Markets Authority, CFD product intervention measures

Your next lesson