Margin Calculator
Calculate required margin, leverage ratio, margin level, and maximum position size for stocks and forex trading.
Margin Level
500.0%
Required Margin
$2,000.00
Free Margin
$8,000.00
Effective Leverage
50.0:1
Margin %
2.00%
Max Position
$500,000
Risk per 1% Move
$1,000.00
Leverage Comparison — $100,000 Position
| Leverage | Margin Req. | Required |
|---|---|---|
| 1:1 | 100.00% | $100,000.00 |
| 2:1 | 50.00% | $50,000.00 |
| 5:1 | 20.00% | $20,000.00 |
| 10:1 | 10.00% | $10,000.00 |
| 20:1 | 5.00% | $5,000.00 |
| 50:1 | 2.00% | $2,000.00 |
| 100:1 | 1.00% | $1,000.00 |
| 200:1 | 0.50% | $500.00 |
| 500:1 | 0.20% | $200.00 |
Understanding Margin and Leverage
Margin is the collateral required to open and maintain a leveraged position. Leverage amplifies both gains and losses — a 50:1 leverage means a 1% price move results in a 50% change in your margin. This is why margin trading requires careful risk management.
Margin level (equity / used margin × 100) indicates account health. Most brokers issue margin calls at 100% and force-close positions at 50%. Keeping margin level above 200% provides a safety buffer against adverse price movements.
US regulations limit forex leverage to 50:1 for major pairs and 20:1 for minors. EU regulations cap at 30:1 for majors. Stock margin under Regulation T requires 50% initial margin (2:1 leverage), while pattern day traders get 25% (4:1 leverage).